Marijuana Business Owners and Investors
There are specific regulatory and statutory provisions detailing what requirements must be met in order to own or invest in a Colorado marijuana business, please ensure you meet the statutory criteria specific to the industry in which you plan to own or invest in a business by reviewing the appropriate resource:
- Colorado Revised Statutes (C.R.S.) — this link will take you to an accessible copy of the Colorado Revised Statutes (C.R.S.) hosted by Lexis Nexis
- Medical Marijuana Code: 12-43.3-307 Persons prohibited as [MED] licensees and 12-43.3-307.5 Business owners requirements
- Retail Marijuana Code 12-43.4-306 Persons prohibited as [MED] licensees and 12-43.4-306.5 Business owner requirements
- Official Code of Colorado Regulation (CCR) — this link will take you to the Colorado Secretary of State website
Please note that the MED cannot provide legal advice; you may want to seek legal counsel if you have questions regarding an interpretation of the above references.
Colorado Marijuana Business Owners
- Associated Key Person License: The majority of individuals that intend to own a Colorado Medical or Retail Marijuana Business should apply for a MED Associated Key License, this includes each natural person, shareholder, officer, director, member, partner or Closely Held Business Entity* that is a:
- Direct Beneficial Interest Owner* (the large majority of owners fall into this category)
- Qualified Limited Passive Investor* (owns less than 5% of the business)
Please use the MED Associated Key License Application to apply for this type of license. Note that individuals that are not Colorado Residents or have not been a Colorado Resident for at least one year prior to application, must submit a Pre-Suitability Application and receive approval of that application before their Associated Key application will be accepted.
- Indirect Beneficial Interest* Owners (IBIO):
Commercially Reasonable Royalty**
Employee Profit Sharing Plan
Qualified Institutional Investor*
To apply for an IBIO, please use the Indirect Beneficial Interest Owners Application
Colorado Marijuana Business Investors:
Permitted Economic Interest* (PEI): an individual (a natural person) that has an unsecured debt against a MED licensed marijuana business that is convertible to an ownership interest in that business. Generally, this is a promissory note, but other financial instruments may be used. Please use the Permitted Economic Interest Registration form to apply for a PEI.
All Applications and Forms may be downloaded from the MED Applications and Forms Page.
* These terms are defined in C.R.S. 12-43.3-104 — Definitions C.R.S. - the Medical Marijuana Code and 12-43.4-103 — Definitions C.R.S - the Retail Marijuana Code.
** These terms are defined in the Colorado Code of Regulation (CCR) Medical Marijuana Rules 1 CCR 212-1 M103 — Definitions Retail Marijuana Rules 1 CCR 212-2 R 103 — Definitions.