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6/20/2025 4 Minnesota Statute: Chapter 342 In Minnesota, cannabis sales are regulated under Chapter 342 of Minnesota Statutes, which was enacted in 2023. This chapter establishes a framework for the state's cannabis industry, including licensing, inspection, and regulation of cannabis and hemp businesses. The law allows for the legal sale of cannabis to individuals 21 and older, with provisions for age verification and other compliance checks. Source: League of Minnesota Cities REVENUE OPPORTUNITY What we know today Initial licenses have been awarded; City license application still in process, moving toward approval. All licensing and oversight will be handled by the State Office of Cannabis Management. Minnesota market includes the following provisional license volumes: •Roughly 350 Microbusiness applicants •50 Cultivation licenses •24 Manufacturing licenses •100 Mezzo business licenses •75 Cannabis Retailer licenses MINNESOTA VS. MATURE CANNABIS STATES Population per Store PopulationDispensariesState 1,4004 Million2,900Oklahoma 4,9004.2 Million850Oregon 5,8005.8 Million1,000Colorado 10,10010 Million990Michigan 10,50039 Million3,700California 10,8005.7 Million525Minnesota (Mature) 28,8006.2 Million215Missouri 38,0005.7 Million150Minnesota (Roll-Out) What to know Oregon and Oklahoma allowed too many licenses without adequate capital or compliance thresholds causing oversupply, price reductions, and store closures Michigan and Colorado fared better but face consolidation and declining margins due to dense competition Key to successful cannabis market is limiting number of licenses and a low tax rate. Minnesota state guidance limits one store per 12,500 population for market stability Saint Anthony Village is positioned to establish trusted, high-traffic operation before widespread competition arrives 7 8 48