Black- and gay-owned cannabis businesses opening and expanding in Illinois

After years of struggling to get off the ground, several Black-owned cannabis businesses recently have opened or expanded in Illinois, bucking the trend of companies that haven’t been able to acquire financing to get going.

One of the recent openings is the self-described Black-, Latino-, veteran- and queer-owned SWAY dispensary in the Lakeview neighborhood. The retail store is a collaboration between cannabis equity advocate and Army veteran Edie Moore, and LGBTQ rights and local business leaders Art Johnston and José “Pepe” Peña — both now 80.

“It’s a long time coming,” Moore said. “Financing is always a big challenge. It’s very expensive to do one of these facilities. Zoning (in Chicago) is a bear, and expensive.”

Access to marijuana was an important issue in the gay rights movement, especially in the 1980s, because so many members of the community were suffering from AIDS or cancer.

“After all of these years of prohibition,” Johnston said, “it will be an honor to provide safe access to cannabis for our community and beyond.”

Johnson and Peña also are co-owners of Sidetracks, a popular gay bar since the 1980s, across the street from SWAY.

Statewide, there are 213 recreational or “adult use” dispensaries , almost half of which are social equity dispensaries, generally defined as those owned by people with prior low-level cannabis convictions, or who come from areas of high cannabis arrest rates or high poverty.

Another 100 or so conditionally licensed companies are working toward opening. In May, state officials announced they were awarding an additional 48 new conditional licenses.

The openings come as many of those companies face difficulties meeting a July 11 deadline to open. The state will grant further extensions based on need.

At SWAY, its opening brings to fruition a goal that Peña proposed decades ago, never thinking it would come true: ”Wouldn’t it be great to sell weed instead of alcohol?”

“The response from the community has been overwhelming,” co-owner Kevin Hauswirth said.

SWAY recently launched its own brand of cannabis, with plans to open a second dispensary on the South Side.

Since opening in April, the store has already signed up thousands of loyalty customers, and it draws a diverse set of clients, including tourists and Cubs fans. It’s also partnered with the Brave Space Alliance, a Black- and trans-led LGBTQ center on the South Side.

At the same time, a spinoff of the largest Black-owned cannabis company in the United States is expanding into Chicago.

Former NBA star Al Harrington and Chicagoan Dan Pettigrew formed Viola Brands in 2011 in Colorado. It was named after Harrington’s grandmother, Viola, who suffered from diabetes and glaucoma. As Harrington tells it, she tried cannabis and cried tears of relief when she was able to again read her Bible.

“It completely changed the way I felt about cannabis,” Harrington said.

Pettigrew and business partner Al Lomax expanded to Illinois, and last year opened their first dispensary under the name Viola Chi in west suburban Broadview. This month, they opened their second store, under the name Village, in Chicago’s Lincoln Park neighborhood, which celebrated with a block party recently.

The business owners are still in litigation, trying to get a craft cultivation license.

“It is unbelievably challenging,” Pettigrew said. “Now, we’re pivoting to increase our footprint in Illinois.”

The founders hope to add three more dispensaries in the state, by partnering with local startups. They say they’re not looking to buy anyone out, just to leverage their infrastructure to help social equity companies.

Similarly, Galaxy Labs is looking to expand. The company opened a craft grow and dispensary in Richton Park. Recently, it became the first craft grower to receive state permission to expand from 5,000 square feet to the maximum allowed 14,000 square feet.

It’s still a fraction of the 210,000 square feet that the original medical weed growers are allowed in Illinois, but it will help enable financing and greater profits. The company also operates a dispensary next door.

Owners Michelle and Rick Ringold opened their cultivation warehouse about a year ago, with plans to expand all along, so the infrastructure they already built will save on future costs.

Galaxy turned down multimillion dollar offers to sell its craft grow license.

“For us, this venture is about creating jobs and economic opportunities,” Michelle Ringold said. “It is our way of giving back to those communities affected the most by the war on drugs, and not simply to make a dollar for ourselves.”