Adult-use legalization was passed in New Jersey in 2020 by the largest landslide in history, with 69% of voters in favor of cannabis.

In March of 2022, the state opened up adult-use retail license applications and received nearly 200 applications in one day. During a public meeting held on March 24th, the CRC hearing unanimously approved 68 conditional cultivation and manufacturing licenses. A meeting later held on May 24th, announced the approval of six additional adult-use cannabis retailers to join the existing 13 that were able to launch adult-use sales on April 21st.

The CRC also granted awave of conditional approvals to cannabis cultivators, manufacturers, and retailers. There were a total of 46 conditional license awardees: 22 class I cultivator applicants, 13 class II manufacturer applicants, and 11 retailer applicants.

Temporary restrictions have been put into place for recreational cannabis business operators, one being a ban on vertical integration for operators in effect until February of 2023.

Adult-use sales kicked off the day following the cannabis high holiday, and generated $24 million across 13 retail locations within the first month of legalization.

February 2022 | IPR completes $35MM acquisition of 114 sqft facility

September 2021 | AYR Strategies acquires Garden State NJ for a $101MM

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 vertically integrated operators within the state will find an abundance of availabe capital to expand cultivation and prepare well-located retail shops to satisfy the fifth most densely populated state's anticipated enormous demand. With Pennsylvania still not having a recreational cannabis market, and New York continuing to run into delays, prepare for the neighboring states to participate in the booming demand within the Garden State.
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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 existing operators within the state, building out your license(s) is the name of the game. For license holders that are restricted temporarily from vertical integration, maximizing your license and seeking potential out-of-state strategic parternships is a step in the right direction for dominating the market.

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