Governor Ned Lamont signed SB 1201 on June 22, 2021, officially legalizing recreational marijuana. A compromise agreement gives social equity applicants priority status in obtaining cultivation and retail licenses.
Recreational adult-use retail is not expected to open till late 2022. Moreover, a prospective adult-use cannabis operator must make a "good-faith effort" to enter into a labor peace agreement with a union before receiving its final license.
Under the agreement, local jurisdictions could prohibit retail sales through zoning ordinances, but residents could petition for a local referendum on the issue.
November 2021 | Verano completed the acquisition of Willow Brook Wellness, LLC as well as entered into definitive agreements to acquire Caring Nature, LLC and Connecticut Pharmaceutical Solutions, Inc.
July 2020 | Curaleaf acquires Arrow Alternative Care Dispensaries
January 2019 | GTI acquires Advanced Grow Labs
With adult-use sales on the horizon, this market could quickly generate $250MM in sales in the first full year and $725MM in the fourth year.
Major MSOs have already entered this state through acquisitions and will benefit from first-mover-advantage. The Constitution State enjoys an attractive population density with a limited license regulatory framework. Look for the regulatory framework to expand, allowing for more patients and revenue while the northeast continues its march towards full legalization thanks to pressure from adult-use neighbors Massachusetts and New Jersey.
Once the state goes through the lottery process and issues those new adult-use licenses, there will be a demand of capital needed to build out the market. The capitalized and experienced operators should look to team up with license winners to get a foothold in the state.
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