Lawyers representing 11 people who were disqualified from applying to open a cannabis retail store in Ontario are seeking to appeal after a court dismissed their challenge of the rejection last month.

The group has filed a notice that it is seeking leave to appeal the divisional court decision, saying the three-judge panel erred in finding the Alcohol and Gaming Commission of Ontario acted reasonably in interpreting the licensing rules.

It also argues the case raises issues that go beyond the interests of the specific parties, such as what counts as proper notification.

The group has also filed a motion contesting another judge's decision not to put the cannabis licensing process on hold until the application for leave to appeal is resolved.

The 11 initially turned to the court in September to challenge their disqualification and dispute the fairness of the procedures involved in the lottery used to grant pot shop licences.

The Alcohol and Gaming Commission of Ontario, which administers the system, had said the applicants were rejected for failing to submit a letter of credit within the established five-day deadline.