Dear New Yorkers,
New York promised to put independent businesses at the heart of a newly legal pot industry. But now, major medical marijuana companies are making their play amid the state’s stalled retail launch. If, as expected, the state’s cannabis regulatory agency passes on Tuesday a proposed set of permanent rules for the industry, any of the 11 medical companies that pony up a $5 million down payment will be able to open a medical store to sell cannabis products to adults by the end of the year. They’ll be allowed to cultivate up to 100,000-square-feet of weed in indoor environments not permitted for other growers — allowing them five harvests a year, compared to one for the struggling individual farmers currently licensed by the state to grow outdoors only. And they’ll be the only state licensees allowed to operate full farm-to-processor-to-retail operations. State officials prohibited this type of vertical integration in the law legalizing cannabis so that small operators entering the market had a better chance to succeed against deep-pocketed corporate players. For those who have tracked the state’s legalization process, Big Weed’s multi-million entry may come as a surprise. When legalization took place in March 2021, the law’s progressive character assumed center stage. “No other state in the country prioritized the people who were most negatively impacted more than New York,” said state Assembly majority leader Crystal Peoples-Stokes (D-Buffalo), who co-sponsored the legislation. But now, with the state having failed to roll out more than a handful of weed stores and a court injunction halting the opening of stores owned by people affected by drug laws — plus, licensed growers sitting on hundreds of thousands of pounds of rotting product because of the dearth of authorized retailers — larger companies are about to cash in.
Read more here. |
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