New York’s $800 million cannabis market, CHARTED 📈

NEW YORK
New York’s cannabis industry is an $800 million market

Driving the news: New York’s cannabis market rollout has been rocky, to say the least, since the Marijuana Regulation and Taxation Act was passed in 2021. 

It took years for the first legal dispensaries to open as the program got tied up in lawsuits — and the licensing delays were the subject of an investigation by Gov. Kathy Hochul, which resulted in the head of the chief regulatory agency, the Office of Cannabis Management (OCM), stepping down earlier this year. 

Read more from our October 7 newsletter on the New York market. 

While it’s not quite smooth sailing yet in New York (another lawsuit was filed yesterday), the industry is showing signs of strong growth. 

Let’s go to the charts: 

The state is set to do over $800 million in cannabis sales by the end of this year, OCM Policy Director John Kagia said at a Cannabis Control Board meeting in midtown Manhattan on Tuesday:

Weekly sales hit $24.3 million in November:

There are now 273 dispensaries licensed across the state — 217 of those are social equity-linked Conditional Adult Use Retail (CAURD) licenses:

And, 54% of all dispensary licenses are social equity owned — with 38% of them minority-owned:

And more: The state’s Cannabis Control Board also approved new rules for Registered Organizations, which are mostly large, publicly traded companies operating in the state’s existing medical cannabis market.

The state authorized a payment schedule for the $20 million fee that these organizations must pay to transition to the recreational market — where they’re allowed three stores — which includes a $5 million up-front fee followed by the rest of the $15 million. And, these organizations must demonstrate their capacity to “serve the public interest,” including affordable prices, diversity, equity, and inclusion goals, sustainability, and outreach to researchers. 

The last word: New York’s cannabis industry is finally starting to realize its potential.

-JB

MAKING LIFE EASIER*
Say goodbye to endless spreadsheets and payroll panic

You’re running a cannabis business and there’s a lot to juggle – regulations, compliance, inventory, taxes, the list goes on and on (and on). 

The last thing you need is payroll and HR hassles. 

That’s where UZIO comes in.

Whether you're a small dispensary or a multi-state operator, UZIO's all-in-one platform makes it easy to manage payroll, benefits, time tracking, and more. 

UZIO’s system is designed specifically for the unique needs of the cannabis industry, so you can stay compliant and focused on growing your business.

Say goodbye to paperwork and payroll panic. 

Say hello to stress-free HR management with UZIO. 

Ready to simplify your workflow?

👉 Learn more and book a demo

*sponsored

“What I suspect he would really like to do is get it downgraded by the DEA so that it’s not illegal,” Former New Jersey governor and one-time Trump campaign surrogate Chris Christie told Benzinga. 

“The trouble the cannabis industry has now is that a lot of people still won't do business with them, because the proceeds are tainted by the fact they are created through a drug that is illegal in the United States,” he said. Christie suggested that President-elect Donald Trump would push to remove cannabis from the federal list of Controlled Substances, going further than the ongoing rescheduling process initiated by President Joe Biden, which would downgrade cannabis from the most restrictive Schedule I to Schedule III.

But it’s unclear if Christie has any actual insight into Trump’s thinking on the issue, or he is just speaking off the cuff. Still, it appears Christie’s comments sent cannabis markets soaring — MSOS, an ETF that tracks a basket of US cannabis stocks, finished the trading day up nearly 17%, just a week after dropping nearly 30% the day after the election.

New York Cannabis Farmers Alliance sues regulators 👀

The New York Cannabis Farmers Alliance, a trade group of cannabis cultivators, filed a lawsuit against the state’s Office of Cannabis Management, alleging that the state’s handling of the rollout of legal cannabis has left them in financial ruin. “It’s breaking these poor people who have invested their lives, life savings, their families life savings and they’re dying,” the attorney representing the alliance said. Read more. 

Intoxicating hemp no more 🌿

A new analysis from Bloomberg Law suggests that the next version of the Farm Bill will include an amended definition of hemp that excludes all forms of THC. Hemp-derived THC was technically legalized via a loophole after the last Farm Bill was passed in 2018, but states including California and others have begun to crack down over consumer safety concerns. Read more. 

Israel proposes 175% tariffs on Canadian cannabis 🇮🇱

The Israeli government is proposing 175% tariffs on Canadian cannabis imports, after allegations that Canadian firms were “dumping” cannabis into the Israel market. Read more from StratCann.

Harris skips Joe Rogan podcast over cannabis ❓

Vice President Kamala Harris allegedly skipped a potential appearance on Joe Rogan’s podcast prior to the election over what Rogan said were concerns that he would bring up Harris’s prosecutorial record. This is based on Rogan’s own comments, and the Harris campaign has not confirmed or denied it. Read more.

Eaze gets back into business 🥊

Eaze raised a $10 million Series B to fund the reopening of 70 Eaze/Green Dragon retail cannabis stores in Colorado, California, and Florida. Once dubbed the ‘Uber for weed’ and valued at $700 million, the company pivoted to direct retail sales and was forced to shut down and lay off employees in October after its assets were foreclosed on in August. CEO Cory Azzalino said on LinkedIn he will remain steering the ship — it’s impressive he was able to pull this off with equity funding instead of debt. The company didn’t disclose the investors.

Agrify acquires hemp beverage brand 🍹

Agrify, recently bought by Green Thumb Industries, is already making moves: The company acquired the Señorita brand of hemp-derived THC beverages in an all-stock deal. The move makes Agrify the only Nasdaq-listed company selling intoxicating hemp beverages in the US market. Agrify’s stock skyrocketed up nearly 60%. 

AYR Wellness gets into NY 🗽

Cannabis firm Ayr Wellness is entering the New York medical cannabis market via Amethyst Health, which was awarded a ‘Registered Organization’ license by the state on Tuesday.

Aligning intoxicating hemp and cannabis regulations 🌿

Ohio State’s Drug Policy Enforcement Center suggests two ways to regulate intoxicating hemp products: 1) Only allow intoxicating hemp in licensed cannabis dispensaries, and 2) establish an intoxicating hemp licensing process similar to alcohol or tobacco. Read the entire report here. 

‘Sleepy cannabis’ 😴

A new study published in the journal Neuropsychopharmacology found that CBN — an active compound in cannabis plants — is responsible for the ‘sleepy’ effects, at least in rats. 

Government weed 🤝 legal weed

A new study from researchers at the University of Mississippi, the only federally approved cannabis grower in the US, found that genetics — not regional growing differences — are most responsible for the active compounds, or cannabinoids, found in the plant. The researchers also say that the “government” cannabis they grow is chemically similar to cannabis available at legal dispensaries. Read the full study in Frontiers in Public Health.

Cannabis earnings season continues. Here’s what you missed: 

• Ascend Wellness Holdings reported a $28.3 million net loss on $141.6 million of revenue. 

• Cronos Group reported $7.3 million net income on $34.3 million of revenue, up 38% year-over-year. 

• Weedmaps (WM Technology) reported $5.3 million net income — reversing $2.3 million losses during the same quarter last year — on $46.6 million revenue. 

Ispire reported a $5.6 million net loss on $39.3 million of revenue, down from $42.9 million sequentially.

Retailers still waiting for cannabis officials to move forward with consumption lounges | New Jersey Monitor

Here’s what happens when a school is located near a cannabis dispensary | The Conversation

Every GOP Senate Majority Leader candidate opposes legalization | Marijuana Moment