The following content is excerpted from the Prospectus of Tidal Royalty Corp. dated January 29, 2018 filed on SEDAR.
Washington Marijuana Industry Overview
Washington State has both medical and adult-use marijuana programs. Washington State passed a medical
marijuana patient/caregiver law by popular vote in 1998 but was unable to regulate medical marijuana businesses
that developed in the late 2000's. When Initiative 502 legalized marijuana for adults 21 years of age and older in
2012, it licensed adult-use marijuana businesses within the Washington State Liquor and Cannabis Board (WSLCB)
and left the unregulated medical marijuana establishments in a precarious situation. Senate Bill 5052 was signed in
2015, which allows existing adult- use retail marijuana stores to apply for a "medical marijuana endorsement" and
sell medical marijuana tax free to registered qualifying patients and their designated caregivers. To accommodate
for patient demand and the elimination of unregulated medical marijuana storefronts, Washington re-opened its
application process for new adult-use marijuana retail stores. Priority is given to those who were operating or
employed by a marijuana collective before January 1, 2013 in compliance with all other state and local restrictions.
Unlike many other states, Washington prohibits vertical integration between retailers and cultivators. There are four
primary business types: producers that cultivate marijuana, processors that create infused products, retailers that sell
marijuana to consumers, and testing labs that test cannabis for contaminants. Only producers and processors may
be vertically integrated. In the past year, rules passed by the WSLCB removed the six-month residency requirement
for applicants and investors in Washington's marijuana establishments. As of November 9, 2016, Washington state
has issued 453 retail marijuana licenses. The state is currently not accepting new applications for growers,
producers or processors.
Summary by States
Arizona State Summary >>
California State Summary >>
Colorado State Summary >>
Florida State Summary >>
Puerto Rico State Summary >>
Oregon State Summary >>
Washington State Summary >>
Nevada State Summary >>
