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A medical marijuana dispensary applicant in Arkansas lost a legal challenge to obtain an MMJ license, which means the state can restart the permitting process.

In response to Medicanna’s lawsuit contending regulators had broken Arkansas rules by awarding an MMJ license to a company that had scored lower on its application, a Pulaski County Circuit Court judge issued a temporary restraining order on Feb. 25 preventing Arkansas from issuing new licenses.

On Tuesday, Judge Wendell Griffen ruled that Pine Bluffs-based Medicanna had no grounds to challenge the licensing procedure, the Arkansas Democrat-Gazette reported.

The judge sided with the state’s contention that Medicanna disqualified itself when it requested and received a refund of its application fees last April.

Medicanna plans to decide within the next few days whether to appeal.

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