In a recent ruling, the Maryland Cannabis Administration (MCA) successfully defended its decision to deny a conditional dispensary license to JG and ND, LLC (JGND), citing regulatory violations stemming from a post-lottery ownership change. The Summary Decision Order, issued in May 2025, ends months of legal dispute and reinforces the state’s position on maintaining fairness and integrity in the cannabis licensing process.
JGND initially submitted its application during the December 2023 social equity licensing round and was selected in the March 2024 lottery. However, following its selection, the company sold 100% of its ownership interest to Pure Vida, a firm whose owner also qualified as a social equity applicant. This change took place in August 2024, before JGND received its official license, and was disclosed to MCA shortly thereafter.
Maryland regulators viewed the ownership transfer as a material change to the application. According to the MCA, the original application became factually inaccurate once ownership shifted, violating regulations under the Code of Maryland Regulations (COMAR) that prohibit material misstatements and require licensees to submit truthful, complete applications. JGND never submitted a required ownership attestation, further undermining its standing.
JGND argued that the application was accurate at the time of submission and that there is no statutory language explicitly banning ownership changes post-lottery. The company also objected to the MCA’s use of its April 2024 “Ownership and Control Guidance,” which was temporarily blocked by a court injunction. The court had previously ruled that the guidance couldn’t be used as the sole basis for license denials.
In the final decision, the MCA’s hearing officer agreed in part, stating that JGND’s failure to submit an attestation tied to the guidance could not be used alone to justify denial. However, the agency’s broader reasoning—centered on the material change in ownership after lottery selection—was upheld. The hearing officer emphasized that allowing such changes would undermine the competitive equity of the licensing process.
With the state’s motion granted and JGND’s denied, the company is no longer eligible for a conditional license under the current round. The decision may be appealed to Maryland Circuit Court within 30 days.
