Stockton's marijuana dispensary lottery is going up in smoke after almost every application was deemed ineligible, except for one.

Cannabis dispensary company Embarc says they are in the process of working with the city to grow its business into Stockton.

Embarc has 17 stores across California. 

"We're excited to have won the lottery and be at this point," said Devon Wardlow, Embarc's vice president of public affairs. "We still have some work to do to go through as we have to go through the use process with the planning commission, so we're hopeful we'll make it through."

The City of Stockton's cannabis application process was only open for a month in late spring, during which the city received four applications.

"Only one (1) application was eligible to participate in the random lottery drawing. As a result, one (1) eligible application will be declared the lottery winner by default," the city said in a press release.

The other three, however, were deemed ineligible.

Embarc gave CBS News Sacramento access inside their Sacramento dispensary on Mack Road, one they say will be a model for the one that could hopefully open up in Stockton.

"Stockton is really near and dear to our hearts because one of our co-founders is from the area. This is really full circle to be at this point where we've found a location," said Wardlow.

The Stockton location is being kept under wraps, for now. But Wardlow says Embarc is different compared to other dispensaries because they contribute one percent of profits back into the community.

"We are giving back over $2 million throughout the course of the business back into the community. This is an example of how cannabis retail can benefit the communities that we serve," Wardlow said. 

To go even higher, the company says they'll hire locally for what they say will be Stockton's first cannabis dispensary with a unionized labor force.

"Real job growth and creation, these are not just jobs, these are career paths," Wardlow said.

It's unclear why the other cannabis store applications were deemed ineligible. 

The next step is for Stockton's planning commission to look at Embarc's proposal. From there, it could be approved for groundbreaking or go to the city council for final say.