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.
August 2019 | GTI acquires Fiorello Pharmaceuticals
October 2019 | Cresco acquires Glouscher Street Capital, LLC
November 2017 | MedMen acquires Bloomfield Industries
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.
*Each vertically integrated license can open four dispensaries for a total of 40 dispensaries across the state.