MINNEAPOLIS, MN – The State of Minnesota has taken a significant step toward the operational launch of its legal adult-use cannabis market, announcing the issuance of its first business license. The Minnesota Office of Cannabis Management (OCM) confirmed today that the inaugural license, a crucial milestone in establishing the state’s regulated industry, has been granted to Herb Quest, LLC.
Herb Quest, a microbusiness located in Brook Park, Pine County, is the recipient of this historic license. As a social equity license holder, the company is poised to play an early role in the emerging market, initially focusing on outdoor cannabis cultivation. This initial award signals that the regulatory framework is beginning to translate into tangible business opportunities on the ground.
Laying the Foundation for the Cannabis Market
The OCM’s issuance of this first license is part of a broader, multi-phased rollout designed to build a regulated industry encompassing cultivation, processing, testing, and retail. The agency also provided updates on subsequent licensing windows, outlining opportunities for various types of cannabis businesses and associated services.
Looking ahead, the OCM announced that it will begin accepting applications for cannabis event organizer licenses on a rolling basis starting August 1, 2025. These temporary licenses are designed to enable holders to plan and host events where cannabis products may be sold and consumed under regulated conditions across Minnesota. The regulations governing these events are specific and designed to ensure public safety and responsible consumption.
State regulations stipulate that participation in these licensed cannabis events must be restricted to individuals aged 21 and older. Furthermore, the sale or consumption of alcohol is strictly prohibited at these venues. Events may feature the on-site sale and use of adult-use cannabis products, as well as lower-potency hemp edibles and other hemp-derived consumer products. Multiday events are permitted but cannot exceed four consecutive days. Importantly, each event requires a separate license from the OCM, in addition to necessary local approval from the host municipality or county.
Expanding Licensing Opportunities: Testing and Retail
In parallel with the event organizer licenses, the OCM is also preparing to open the application window for cannabis testing facilities on August 1, 2025. Testing laboratories are a critical component of the regulatory structure, ensuring that cannabis products sold in the state meet safety, potency, and quality standards before reaching consumers. The opening of this application category on the same date as event organizers underscores the agency’s effort to develop various sectors of the market concurrently.
These licensing announcements follow recent licensing lotteries that have seen considerable interest from prospective participants. Hundreds of applicants have competed for various license types as the state moves through its initial award process. The OCM is utilizing a lottery system for certain license categories to manage demand and provide equitable opportunity among qualified applicants.
The highly anticipated lottery for retailer licenses for general applicants is currently set to be awarded on July 22. This date marks a pivotal moment for the retail sector, determining which businesses will be granted the ability to open dispensaries and sell cannabis directly to adult consumers across the state.
Prior to the general retailer lottery, a dedicated social equity application window is scheduled to be open from July 7-21. This window is specifically designed to provide opportunities for individuals and communities historically impacted by cannabis prohibition, aligning with the state’s commitment to fostering an equitable industry. Applicants meeting specific social equity criteria will have the opportunity to apply during this period, with their applications considered in subsequent processes.
The Road Ahead
The issuance of the first license to Herb Quest, LLC, combined with the clear timelines for event organizer and testing facility applications and the upcoming retail lottery dates, paints a picture of an emerging market slowly but surely taking shape in Minnesota. While the full retail market is not yet operational, these incremental steps demonstrate tangible progress by the Office of Cannabis Management in building the necessary regulatory and business infrastructure. The focus on social equity, stringent event regulations, and mandated testing highlight the state’s approach to establishing a controlled and responsible cannabis industry. As application windows open and further licenses are awarded in the coming weeks and months, Minnesota’s legal cannabis landscape will continue to evolve, moving closer to full operational capacity.
