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):
    • Affiliated Interest**

    • 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.