All Eyes Are On The New York Cannabis Market To Bring Some Much Needed Excitement Back Into The Sector

New York is a cannabis market that we have been highly focused on and we want to provide an update on it after New Jersey started to allow for the sale of recreational cannabis.

Last week, Cannabis Control Board Chair Tremaine Wright provided more information on the retail and cultivator conditional licensing programs that it recently launched. From providing loans from a $200 million cannabis social equity fund to estimating the number of conditional dispensary licenses that will be issued, her update provided important information on the expected timeline for the state to allow for the sale of recreational cannabis.

Wright expects the state to issue up to 200 conditional dispensary licenses and said the first batch of licenses will be granted to applicants who have been impacted by the war on cannabis prior to legalization. Wright said that recreational cannabis sales should commence in the fall and we expect New York to become one of the largest markets in the country.

The process of legalizing recreational cannabis in New York has been extensive and we believe the amount of time it has taken has put additional pressure on the sector. Over the next year, we expect to see more interest in the New York cannabis market and for legalization to be a catalyst for the companies that are levered to it.

During the last few years, we have seen several mid and large-scale United States (US) multi-state operators (MSOs) exit the New York market by selling previously issued medical cannabis licenses. We believe these operators exited the market due to the amount of time it has taken for the state to advance recreational cannabis legislation.

Although it has taken a significant amount of time to advance legislation in New York, we saw a similar situation in Illinois before it started to allow for the sale of recreational cannabis. Last year, Illinois generated more than $1 billion of recreational cannabis sales and we expect to see similar results in New York.

If you are interested in learning more about companies with leverage to New York’s cannabis industry, please send an email to support@technical420.com with the subject “New York’s Cannabis Industry” to be added to our distribution list.

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