The cannabis industry in New York is about to get a lot more crowded after regulators opened the state's market to multistate operators like Cresco Labs (CRLBF) -) and Curaleaf (CURLF) -).
MSOs and existing medical marijuana companies can apply for licenses in the state starting in October, potentially adding some big names to the ever growing queue of businesses looking to do business in the state.
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"Today marks the most significant expansion of New York's legal cannabis market since legalization, and we’ve taken a massive step towards reaching our goal of having New Yorkers being able to access safer, regulated cannabis across the state," said Chris Alexander, executive director of the state's Office of Cannabis Management.
Under current rules, retail licenses are available only to applicants under New York's Conditional Adult-Use Retail Dispensary license program. To qualify for the program the applicant has to be directly affected by a marijuana-related conviction, according to Marijuana Moment.
This approach has resulted in the state's cannabis industry growing at a snail's pace. But now that the big dogs can enter the race for New York's market share, smaller growers and and the "directly impacted" may find themselves at the back of the approval line.
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"We are immensely proud to be building the fairest, most competitive cannabis industry in the nation — one that puts those most harmed by prohibition first and offers a true opportunity for all New Yorkers — not just large corporations — to compete and thrive," Alexander said.
The state insists that its social and economic equity applicants will receive priority consideration and a 50% reduction in application or licensing fees.
To give small businesses a leg up, the law established a two-tier system that prevents licensees from the supply side of the market (growers) from having more than a "minimal financial interest" in the retailers applying for licenses.
“Our pledge to social and economic equity will continue to take center stage, ensuring that individuals and communities from all backgrounds have a fair shot at success in this burgeoning industry," Alexander said.
New Yorkers will have to wait and see if that's true.
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