Who is behind Central KY’s medical marijuana businesses? What we know about them
AI-generated summary reviewed by our newsroom.
- Over 11,000 Kentuckians hold cannabis cards, but product sales have not begun.
- Business licenses changed hands in 2025; several dispensaries plan fall openings.
- State inspections of cultivators are underway; product supply may soon increase.
As patients wait for the start of medical marijuana sales in Kentucky, businesses across the state are racing to set up a supply chain to make them happen, hopefully by late 2025.
Central Kentucky is likely to be a major hub of the state’s medical marijuana industry, given its two largest cultivators have relocated to the region.
That includes a cultivation facility based in Winchester managed by Cresco Labs. With a 5,000-foot plant canopy ready this fall, Cresco hopes to have product to market by December, the Herald-Leader previously reported.
The Bluegrass region also will be home to a cluster of dispensaries, including a Lexington store with plans for a drive-thru.
Casey Flippo, one of two Arkansas-based entrepreneurs involved with KYLX Acquisition Company LLC, said his project in Lexington’s popular Hamburg shopping district should be open by mid-November if all goes to plan.
In a June interview with the Herald-Leader, Flippo said it has “historically been pretty challenging” to quickly stand up infrastructure for medical cannabis.
The Herald-Leader has made repeated attempts to speak with Fayette County cannabis business license holders or their representatives about their projects for this story. Here’s what we know about who owns Central Kentucky’s medical marijuana businesses.
Who are Central Kentucky’s medical marijuana business licensees?
In the first half of 2025, many of the initial medical marijuana business licenses Kentucky issued via lotteries last year have changed hands. Their holders have either sold or transferred ownership of them, and it’s possible that could continue in the coming months.
Many factors shape the asking price for business license when a holder does want to sell one, said Bradley Clark, a Lexington attorney who represents several licensees across Kentucky.
For dispensary licenses, location is perhaps the biggest factor. A license for a dispensary in Louisville, for example, could command a much higher price than one in a rural area.
“I think you would be hard-pressed to let go of a dispensary license for less than a $1 million, or even at $4 million,” Clark said in a July 9 interview.
Additionally, some businesses have had to change locations, given Kentucky doesn’t allow more than one dispensary per county, except in Jefferson and Fayette counties.
In Kentucky, state licenses for cultivator operations are tiered based on allowable growing area. The larger the tier, the bigger the growing space. Kentucky did not award licenses for the largest, tier IV, during its initial licensing phase. The four tiers are as follows:
- Tier I: Less than or equal to 2,500 square feet of growing area. Non-refundable application fee: $3,000. Annual licensing fee: $12,000. Capital requirements: $50,000.
- Tier II: Less than or equal to 10,000 square feet. Non-refundable application fee: $10,000. Annual licensing fee: $25,000. Capital requirements: $200,000.
- Tier III: Less than or equal to 25,000 square feet. Non-refundable application fee: $20,000. Annual licensing fee: $50,000. Capital requirements: $500,000.
- Tier IV: Less than or equal to 50,000 square feet. Non-refundable application fee: $30,000. Annual licensing fee: $100,000. Capital requirements: $1,000,000.
As of July 29, the full list of licensees in Fayette and neighboring counties includes the following, according to the Kentucky Office of Medical Cannabis.
Fayette County medical cannabis business license holders:
Aquatic Laboratories LLC, doing business as Cannabusiness Laboratories. It is one of Kentucky’s safety compliance labs that test medical cannabis samples with the goal of assuring they’re safe for use.
Wong Investments LLC. As a Tier I cultivator, it was originally licensed in Christian County. In March, Kentucky’s Office of Medical Cannabis approved a request by the licensee to move to Fayette County.
Joseph Serock. Another Tier I cultivator initially licensed in Christian County. In March, the state approved a request by the licensee to relocate to Fayette County.
VS Kentucky Ops LLC. The license is for a Tier II cultivator. It was originally held by NG Health LLC, owned by Cincinnati investor Nicholas Grammas, according to a license application. His resume lists him as the co-founder and partner at King City Gardens, Cincinnati’s first medical marijuana cultivator. In February, NG Health LLC sold the license to VS Kentucky Ops LLC for a redacted amount. NG Health LLC was officially dissolved in May, a record from the Kentucky Secretary of State shows. A state record lists Charles Kauss as the CEO of VS Kentucky Ops LLC. According to Kauss’ LinkedIn, he is a founding partner of Vega Strategic, an Atlanta-based investment firm.
Limestone Processing. As a processor, Limestone Processing will turn marijuana plants into consumer products for dispensaries. The business’ license was originally co-owed by Kentucky hemp farmer Gary Hilliard and Lexington councilman Hil Boone. However, a state record obtained by the Herald-Leader shows Boone sold off his 49% stake in January. The sale price is redacted.
DHK KY LLC. One of two dispensary business licenses granted in Fayette County, in April its ownership was transferred to the Michigan-based C3 Industries, according to state records. C3 Industries advertises itself as striving to build a “premier, vertically-integrated cannabis company in select markets,” according to its website. C3 Industries is headed by brothers Ankur and Vishal Rungta, who founded the company together. Before entering the cannabis industry, Ankur was an investment banker and Vishal worked at Google, according to Forbes.
KYLX Acquisition Company LLC. Another Fayette County dispensary, the license was originally granted to ZenLeaf Inc., which then sold it to KYLX Acquisition in April for a redacted amount, Office of Medical Cannabis records obtained by the Herald-Leader show. The business’ physical address is listed as 1849 Alysheba Way, which as the Herald-Leader previously reported, is where two Arkansas entrepreneurs affiliated with Dark Horse Cannabis want to open a drive-thru dispensary.
Other Central Kentucky business license holders outside of Fayette County include:
KCA Laboratories LLC (Jessamine County). Doing business as KCA Labs, it is a safety compliance lab based in Nicholasville. KCA Labs was Kentucky’s first licensed medical cannabis testing lab, as well as its first licensed medical cannabis business.
Goeing Blue LLC (Jessamine County). Doing business as Farmtucky, Goeing Blue LLC was organized by Matthew Goeing, a Lexington attorney. In October, it was awarded the state’s first cultivator license back. The license is for a Tier I cultivator. Goeing Blue’s initial license was for Fayette County, but the state’s Office of Medical Cannabis approved a request to change its location to Jessamine County in December 2024.
L&O Legacies (Jessamine County). Another Tier I cultivator licensee, L&O Legacies was initially licensed in Boyd County. It has since relocated to Jessamine County.
Natural State GreenGrass CannaCo (Madison County). One of two Tier III cultivator licenses granted during the launch of Kentucky’s medical cannabis program. Natural State was originally licensed in Warren County, but it’s since relocated to Madison County after state approval.
KSKYAPP LLC (Clark County). KSKYAPP LLC holds the other Tier III cultivator license issued during the first round of medical cannabis business licensing in Kentucky. In April, Cresco Labs held a ribbon-cutting, offering one of the first public glimpses at its Winchester facility. It plans to have products on the market by the end of the year.
OneLeaf Technologies LLC (Clark County) A processor, One Leaf Technologies LLC was initially licensed in Bullitt County but has since relocated to Clark County.
Hilltop Healing Investco LLC (Madison County) A processor initially licensed in Warren County, on July 8, the state approved its request to relocate to Madison County.
Canntucky Ventures LLC (Franklin County) Canntucky Ventures holds a dispensary license, one of four granted in the Bluegrass licensing region (not including the two additional dispensary licenses granted to Fayette as Kentucky’s second largest county).
Garry Kort (Madison County) Garry Kort holds a dispensary license.
Robert Hoogendyk (Jessamine County) Robert Hoogendyk holds a dispensary license. Originally licensed in Madison County, Kentucky’s Office of Medical Cannabis approved a request to relocate to Jessamine County in May.
BD Expansion LLC (Scott County) Originally licensed to ThriveBlue LLC, the dispensary license has since been acquired by BD Expansion LLC.
Are you a Kentucky medical cannabis card holder or applicant? We’d like to talk to you about your experience. Fill out the form below or email ask@herald-leader.com.