VIRGINIA ADULT-USE CANNABIS
Engagement Overview
PreparedFor:
TheoArmenteros
CarryOnCannabis March,2026
This proposal contains trade secrets and information that is sensitive, proprietary, and confidential, the disclosure of which would provide a competitive advantage to others As a result, this proposal shall not be disclosed, used or duplicated, in whole or in part, for any purpose other than to evaluate this proposal. This proposal constitutes the entire agreement of the parties with respect to the subject matter hereof, and no amendment, modification, or addition hereto, or waiver hereof, shall be effective unless in writing, specifying such amendment, modification, addition or waiver, and signed by the party sought to be bound thereby. This proposal may not be reproduced or disclosed to any third party. This restriction does not limit the rights of the recipient to use information contained in the data if it is rightfully obtained from another source without restriction
March 2026
Virginia's adult-use cannabis market represents one of the most significant retail licensing opportunities in the country. With 350 licenses available statewide, a compressed application timeline, and complex zoning and municipal requirements, operators who move early and with structure will hold a decisive advantage Tenax Strategies is prepared to support your entry into this market.
Our team works with operators across the country on retail market entry strategies, from early property identification through municipal engagement, application development, and operational readiness. Operators choose us because we bring a disciplined process that reduces delays, strengthens competitive positioning, and keeps complex, multitrack projects moving forward with clarity and accountability.
For your Virginia engagement, we will operate as an extension of your team. Our work includes identifying and securing compliant retail locations, managing zoning and municipal entitlement processes, coordinating stakeholder outreach, and preparing compelling license applications calibrated to the Cannabis Control Authority's evaluation criteria. We understand the importance of site selection strategy setback compliance, traffic visibility, local political climate, and competitive positioning — and we bring a process that integrates property search with application development so both workstreams reinforce each other.
We will align our support with your operational readiness and growth objectives. Whether you are pursuing a single location or the maximum five licenses permitted under HB 642, Tenax will provide the structure, bandwidth, and strategic intelligence needed to move efficiently through Virginia's September-to-January licensing window. Our goal is to position your organization for success in a market where preparation and execution will determine who secures the strongest locations and the most tions.
discussing your project with you!
Pete D’Agostino
SCOPE OF SERVICES
Virginiawillissue350retailcannabislicensesbeginningDecember1,2026,with applicationsopeningSeptember1TenaxStrategiesoffersthreeengagementpathways designedforthiscompressed,competitivemarket-eachcalibratedtoadistinctphase ofthelicensingprocess.Selectthescopethatmatchesyouroperationalreadiness,or engageTenaxforthefullspectrumofservicesatabundled,discountedrate
APPLICATIONONLY TIER1
Foroperatorswhohavesecuredorwillindependentlysecurecompliantretaillocations TenaxmanagesthestateapplicationprocessthroughVirginia’sCannabisControl Authorityportal
ApplicationDevelopment:Comprehensivenarrativedrafting,businessplan components,anddocumentationforallpersonsandentitiesofinterest—calibratedto theCCA’sevaluationcriteriaandVirginia’scompetitivescoringframework
Submission&Tracking:Fullportalmanagementforuptofiveapplicationsper operator,includingdeficiencyresponses,supplementalfilings,andstatusmonitoring throughtheDecember1,2026licenseaward
PROPERTYSEARCH—TIER2
Full-scopepropertyidentification,vetting,andacquisitionacrossVirginia’seligible cannabisretailmarkets. Encompassesthecompleterealestateandmunicipal engagementcyclefrominitialmarketanalysisthroughexecutedsitecontrol
Zoning&SiteAnalysis:SystematicevaluationagainstVirginia’sretailcannabissiting requirements 500-footsetbacksfromschools,churches,playgrounds,andtreatment facilities;2,500squarefootfloorareamaximum;andlocalzoningclassifications includingby-rightandspecialpermitdistricts.
MunicipalEngagement:Localgovernmentinterfaceincludingstakeholderoutreach, communityengagement,LOIandleasenegotiation,andrepresentationbefore planningcommissionsandgoverningbodieswherespecialpermitsorlanduse approvalsarerequired.
FULLSERVICE—TIER3
Integratedpropertysearchandapplicationpreparationunderasingleengagement EnsurescoordinatedexecutionacrossbothworkstreamswithinVirginia’scompressed September–to–Januarylicensingtimeline.
IntegratedStrategy:Unifiedapproachaligningpropertyselectionwithapplication positioning municipaloutreach,regulatorycompliance,andapplication developmentmanagedasasinglestrategicoperationratherthanparallel workstreams
End-to-EndExecution:AllTier1andTier2deliverablesincluded,managedbya dedicatedengagementteamthroughtheSeptember1applicationopening,December 1licenseaward,andJanuary1commencementofretailoperations
Virginia Engagement Pricing
Application Only (Tier 1): Tenax prepares and submits your state license applications through Virginia’s portal. Includes drafting, compilation, and submission for up to five applications. No property search or municipal work included
Property Search (Tier 2): Full-scope property identification, vetting, and acquisition zoning analysis, municipal outreach, LOI drafting, negotiation, and permitting. Monthly retainer; 3-month minimum.
Full Service (Tier 3): Combined property search and application preparation. Base retainer includes 1 property + 1 application; discounted rates for additional scope. 4-month minimum.
Market Opportunity Summary
VirginiaCannabisRetail
HB642establishes350retailcannabislicensesstatewide-acapped, competitivemarketwherefirstmoverswillholdadecisiveadvantage. Eachoperatormayholduptofivelicenses.
CRITICALTIMELINE
Sept.1,2026 Applicationsopen
Dec.1,2026 Initiallicensesissued
Jan.1,2027 Retailsalesbegin
KEYREQUIREMENTS
FloorSpace: 2,500sqftmaximum
Setbacks: 500ftfromschools,churches,playgrounds,treatment centers
Licenses: 5maxperoperator(excl.transporter)
TaxBurden: ~12.3–14.8%total
Gov’tFees: $5,000application+$80,000permit
WHYTENAX
TenaxStrategiesbringscannabislicensingandpublicaffairsexperience acrosslegalmarketsnationwide.Wecombineregulatoryexpertisewith municipal,levelpoliticalintelligence,givingourclientsanedgethat beginsbeforetheapplicationportalopens.
Next Steps
We welcome the opportunity to review this scope & pricing structure and discuss how Tenax Strategies can position you for success in Virginia's emerging adult-use cannabis market. Schedule a complimentary discovery call using the link below, or reach out directly to Greg or Pete today.
ABOUT THE FIRM
For 10 years, Tenax Strategies has provided end-to-end project management forclientstoestablishlicensedcannabisbusinessesinseveralstates,including in some of the most heavily-regulated and challenging municipalities and locations We take cannabis businesses from concept to commence operations, managing projects and cutting through the red tape so cultivators, retailers, manufacturers and others can focus on getting their doors open and jointhisexcitingandgrowingindustry.
Unlike many cannabis consultants, we actually perform the work. We don’t just createaplanandadviseclientsonwhattodo We executethatplan,including taking on the often labor-intensive tasks and managing the project from idea to opening. We handle the license application process, sort through state and local laws and permitting regulations, build coalitions of support in local communities, manage site selection, assist on compliance for state and local matterswhenbusinessesmergeorareacquiredandmore.
Our experience and track record has prepared us for success in even the most challenging business or regulatory climates. We customize campaigns that work and have the know-how to remove barriers to entry so responsible operatorscanthriveintheexcitingcannabisindustry.
OUR LEADERSHIP TEAM
PETER D'AGOSTINO, PARTNER
Peter has extensive experience in government relations, municipal licensing, land use entitlements, and zoning strategy across highly regulated industries. He regularly represents clients before planning commissions, zoning boards, city councils, and regulatory authorities at the state and local level.
Since 2012, Peter and the Tenax team have represented cannabis operators nationwide managing site selection, municipal engagement, land use approvals, permitting, community outreach, and license applications. He specializes in identifying zoning-compliant properties, navigating complex entitlement processes, and negotiating host community agreements Peter provides comprehensive project management, often taking operators from concept to commence operations.
GREG D'AGOSTINO, PARTNER
With over 20 years of experience in public affairs, Greg is a strategist who has managed campaigns across highly regulated industries and complex legislative and regulatory environments He spearheaded Tenax's multi-state exp i f th bi ti providing consulting and project man emerging and legal markets across the c
Greg's priority is delivering value to clie licensed and open, assisting existing o and expanding their portfolio of retail experienced negotiator adept at n municipal landscape to achieve strong o
Before acquiring Tenax Strategies, Greg most successful communications and pu
