The Oregon secondary market for cannabis licenses and businesses remains lively. We have been helping industry buy and sell these businesses since 2016. This post is mostly about pricing for retail plays, which is still an evolving standard, but a standard nonetheless.
First, some context.
Over the past few years, there have been two significant regulatory developments that have influenced both demand and pricing on Oregon Liquor Control Commission (OLCC) marijuana business sales, including retail. The first big change was in June of 2018, when OLCC “paused” its processing of new license applications. People started paying real money for naked licenses not long after that, including for just a “spot in line.” The second significant regulatory development, in my view, is and will be last month’s announcement on streamlined licensing. This administrative pivot already has shaken loose many hundreds of the moldering “paused” applications from two years back.
We’ve seen some funny things happen with pricing between 2018 and today. On the production (grow) side, people have been buying and selling licenses—that is, just the “right, title and interest” to a replacement seller license–over the past year or so for $125K to $175K. We’ve flipped a bunch of those.