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 a wave 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.

In February 2023, the CRC eliminated the 37 license limit on the number of cannabis cultivator licenses in an attempt to boost the New Jersey cannabis industry.

The CRC is currently accepting applications for cultivators, manufacturers, retailers, and testing laboratories. In September 2023, the CRC will begin accepting applications for wholesalers, distributors, and delivery services.

December 2022 | RIV Capital completed its acquisition of Etain for $48MM

February 2022 | IPR completed its $35MM acquisition of 114 sq. ft. facility

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

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

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

May 2020 | AWH completed its acquisition of Green Leaf Compassionate Center for $16.3MM

Existing vertically integrated operators within the state 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. 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 partnerships is a step in the right direction for dominating the market.