Two Columbia businesses lose marijuana microbusiness licenses over ineligibility

COLUMBIA, Mo (KMIZ)

Two Columbia businesses have had their marijuana microbusiness dispensary business licenses revoked. 

On Wednesday the Missouri Department of Health and Senior Services announced in a press release that the Missouri Division of Cannabis Regulation had revoked nine microbusiness cannabis facilities due to ineligibility. This included two Columbia-based businesses under the names of Frankenstein Enemy LLC and Cannarooted LLC. 

The DRC says that one of the nine licenses was revoked because the owner had a felony that disqualified him from having a cannabis license. The other eight were revoked due to having false information on their application.   

ABC 17 News obtained both phone numbers submitted to the MDHSS. Frankenstein Enemy had an area code from Pontiac, Michigan, and did not have a voicemail box set up when a reporter contacted the number. 

Cannarooted was listed under a Phoenix, Arizona, area code. ABC 17 News was able to get in contact with a spokeswoman from the business when they called the number. However, the spokeswoman said was not able to give a statement at the time of the call.

Both businesses were listed under the following addresses on their application: 

• Frankenstein Enemy, LLC at 700 Vandiver Drive,  Columbia
• Cannarooted LLC at 206 East Texas Ave. in Columbia

Neither property had an open business when ABC 17 News checked each site on Wednesday.

Canna Zoned MLS, a Michigan-based company released advertisements offering to sell a recreational microbusiness license for $795,000 with an opportunity to lease the property at 700 Vandiver Drive for $6,000 a month. Another ad was found for a property near St. Louis in Arnold, Missouri. The two licenses that Canna Zoned MLS had listed for sale were initially awarded to Frankenstein Enemy in Columbia and Seashore Rhythm in Arnold before the DHSS determined they did not meet the criteria. 

The designated contact for Frankenstein Enemy — Jeffrey Yatooma, according to records obtained by ABC 17 News — was listed as the contact for 11 businesses that applied for a microbusiness license at 700 Vandiver Drive. He was also listed as the point of contact for 11 potential businesses that could have been located on 2105 West Worley Street. He was also listed as a co-owner of Canna Zoned MLS on the business’ website.

The licenses are intended to help businesses, minorities and people with disabilities break into Missouri’s profitable marijuana market. 

According to a release from the MDHSS the following eleven businesses received a received a notice of pending revocation in December. 

The MDHSS said in a release it issued a Notice of Pending Revocation to the 11 businesses on Dec 15. Each business was given 30 days to fix the issues listed on the notice or respond to the allegation with records and information on why the license should not be suspended. 

The DCR determined that licenses listed under Byepolar Thymez LLC and Individual LLC were majority-owned and operated by people who met the qualifications to own a license. 

According to Cannabis.Mo.Gov, applicants for a microbusiness license needed to meet each of the following criteria:

• Have a net worth of less than $250,000 and have had an income below 250% of the federal poverty level, or successor level, for at least three of the 10 calendar years before applying for a marijuana microbusiness facility license; or
• Have a valid service-connected disability card issued by the United States Department of Veterans Affairs, or successor agency; or
• Be a person who has been or a person whose parent, guardian or spouse has been arrested for, prosecuted for, or convicted of a non-violent marijuana offense, except for a conviction involving provision of marijuana to a minor, or a conviction of driving under the influence of marijuana. The arrest, charge, or conviction must have occurred at least one year prior to the effective date of this section; or
• Reside in a ZIP code or census tract area where:
  • Thirty percent or more of the population lives below the federal poverty level; or
  • The rate of unemployment is 50% higher than the state average rate of unemployment; or
  • The historic rate of incarceration for marijuana-related offenses is 50% higher than the rate for the entire state; or
• Graduated from a school district that was unaccredited, or had a similar successor designation, at the time of graduation, or has lived in a zip code containing an unaccredited school district, or similar successor designation, for three of the past five years.

An October release from the DCR says that it received more than 1,600 applications during the July 27-Aug. 10 application period. The state awarded a total of 48 licenses, which were decided by a random lottery drawing.