New York

insights

February 22, 2021
Notable Players

A Deeper Look At This State

Regulatory Framework

New York operators struggle with one of the most onerous regulatory frameworks and highest licensing fee structures in an enormous yet challenging market. Additionally, only non-smokable products, such as edibles and tinctures, are allowed.

New York was set to approve legislation legalizing adult-use cannabis in February 2020 before COVID shut down the state. Experienced professionals suspect adult-use legalization will be accelerated as soon as the virus is contained due to the budget shortfalls. Expect the city that never sleeps to wake up to cannabis sometime in 2021.

Notable Market Activity

August 2019 | GTI acquires Fiorello Pharmaceuticals

October 2019 | Cresco acquires Glouscher Street Capital, LLC

November 2017 | MedMen acquires Bloomfield Industries

What's the Play?

With nearly 20MM residents and one of the highest GDP per capita in the US, it's no stretch to say New York is a lucrative market. Although its medical program was slow to launch, large MSOs have already taken notice. With nine of the 10 licenses being owned by the largest MSOs, New York is the land of bigs.

Operators who can afford the cash burn to build infrastructure will be rewarded when New York inevitably goes adult-use. Much like Illinois, whoever can build out cultivation will have a multi-year window of insatiable demand at industry-high prices. The market is primed, but private investors should wait until adult-use passes, and a new license structure is put in place.

Market Snapshot

This Data Point

58,380

This Data Point

58,380

This Data Point

58,380

This Data Point

58,380

This Data Point

58,380

This Data Point

58,380

This Data Point

58,380

This Data Point

594/273

By The Numbers

Population

~19.4MM

Medicinal Legalization

2014

Adult-Use Legalization

N/A

MMJ Patients

~131K

Monthly Revenue

~$6MM

Cultivation Cap

No Limit

Cultivation Licenses

10/10 (Issued/Limit)*

Retail Licenses

10/10 (Issued/Limit)*

Retail License Cap per Operator

1

Vertical Integration

Required

Delivery

Allowed

MMJ Qualifications

Restrictive

State Population / # Retail Licenses

MMJ Patients / # Retail Licenses

~13K

*Each vertically integrated license can open four dispensaries for a total of 40 dispensaries across the state.

Top Cultivators

Notable Market Activity

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Proprietary Sharp Capital Advisors data - compiled using various sources including state and local government data
Shit We Don't Know

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