Adult-use legalization by ballot initiative in 2020 was passed in New Jersey by the largest landslide in history, with 69% of voters in favor of cannabis. Governor Phil Murphy recently announced that state's new cannabis commission is moving forward with public meetings to roll out the program.

State legislative committees have begun crafting regulations, including plans to award an additional 24 retail licenses. There are 12 vertically-integrated MMJ operators today, each allows three retail dispensaries. A recently enacted law eliminates the prior requirement for vertical integration.

December 2020 | AYR Strategies announces acquisition of one of the original 12 operators, GSD NJ for a $101M

July 2020 | IIPR completes $35MM acquisition of Curaleaf’s 111K sq.ft. cultivation  

June 2020 | Acreage completes NJ medical acquisition for $10MM+ assumption of debt

May 2020 | AWH enters agreement to acquire Green Leaf Compassionate Center

Existing operators will find an abundance of available capital to expand cultivation and prepare well-located retail shops to satisfy the fifth most densely populated state's anticipated enormous demand. And one should not forget the Garden State borders both New York and Pennsylvania, neither of which has legalized adult-use.
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If you have the opportunity to invest in a New Jersey operation, you almost can't lose. Nearly a billion dollars of capital will ultimately be required in this desirable market. The play is with proven operators, who will provide the highest ROI in the near-term future. The challenge here will be in valuation and structuring.

For current New Jersey medical operators, "build it, and they will come," has never been a truer adage. The Garden State truly is lush and green.