New York Archives - Green Market Report

Debra BorchardtOctober 3, 2023


The Cannabis Crop Rescue Act was introduced May 19 by state Democratic Sen. Michelle Hinchey and passed in June, but is waiting for Governor Kathy Hochul to sign the legislation into law.

Sixty-six state lawmakers, including Democratic Assembly Majority Leader Crystal Peoples-Stokes and Democratic Senate Finance Committee Chair Liz Krueger, who sponsored New York’s cannabis legalization law sent a letter dated September 25 asking the Governor to hurry up and sign the Act.

Very simply, the extended timeline of New York State’s troubled rollout of the licensing and regulations establishing a safe, legal market for adult-use cannabis has had a significant negative impact on New York’s licensed cannabis farmers who invested in crops they now have limited places to sell. The crop is also losing value by the day. Regulatory delays, lawsuits, and logistical and
financing challenges have caused the state to miss its timelines and targets. However, cultivators are the group paying the steepest price.

Sell It To The Tribes

The letter also suggests that allowing the cultivators to sell their products to the New York Tribal Nations would be a quick solution to help them recover their costs. The farmers were assured by the Office of Cannabis Management that there would be numerous stores open and available to sell their crops. Instead only 23 stores have opened and the program is currently on hold due to legal challenges. This has resulted in 250,000 pounds of unsold cannabis which has a limited shelf life.

Allowing these farmers to sell their cannabis to purchasing agents from New York’s Tribal Nations can be a short-term solution. These Tribal dispensaries would benefit from access to a source of local, safe, laboratory-tested products. Farmers would benefit from a new pathway to sell their products. Along with the Cannabis Grower’s Showcases, it could be the financial lifeline they need right now.

The Cannabis Grower’s Showcase was meant to be a solution to help the farmers sell their harvested cannabis, but the sales haven’t been enough to make a dent in the unsold pounds. The farmers complain that they can’t advertise the events making it hard to get the word out about the showcases. In addition to that, the farmers have to align themselves with a dispensary in order to do the farmers markets.

The farmers say that the process puts all the work on them with little return. They have to travel to the showcase and set up their booths at their own expense, but can’t sell directly to the consumer. That means the dispensaries just show up and ring the sales, collecting a nice profit, while the farmers manage to unload some product but the profits are outweighing the expense of the setup.

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Video StaffJuly 28, 2023


New York social justice cannabis applicant Roland Connor opened his Manhattan dispensary in the Village to great fanfare at the beginning of the year. However, it was only a temporary store.

Nine weeks ago, the dispensary shut down for a total renovation that cost $1.4 million and was constructed by Temeka. Smacked is expected to officially reopen in two weeks.

Among the developments for the newly renovated store is the consumption lounge that is planned to take up residence in the building’s basement.

StaffJuly 11, 2023


This story was republished with permission from Crain’s New York and written by Mario Marroquin.

A haze is coming to Crotona in the Bronx, and this time it won’t be from Canadian wildfires.

Last week Statis Cannabis Co. became the first licensed adult-use cannabis store to open in the borough, setting up shop at 817 E. Tremont Ave., near the Bronx Zoo and Crotona Park.

Marketing materials from Statis state the dispensary sells flower, concentrate, edibles and vaporizers. The store is located on a 3,300-square-foot retail pad.

The store’s operators, according to the office of Gov. Kathy Hochul and Statis CEO Christian Chavez, were supported by the New York Social Equity Cannabis Investment Fund.

The CEO declined to disclose the length of the lease at 817 E. Tremont Ave., but said the company has an extension option with the owner of the property. Chavez declined to specify how much it cost to build out the store and his projections for revenue.

Statis arrives seven months after the first recreational dispensary opened in the city, in the East Village, and just days before four other recreational cannabis dispensaries opened in the state, one of which was in Farmingdale, Long Island.

The governor’s office said those openings raise the number of dispensaries in New York to 19.

Crain’s reported in June that the state Office of Cannabis Management had granted 215 licenses in New York since November 2021, when sales of recreational cannabis became legal in the Empire State.

Video StaffJune 26, 2023


On the Revel hosted a New York cannabis community event on June 22 bringing together licensed operators. New York cannabis producers were able to display their businesses as potential buyers shopped around for dispensary products. Roughly 800 people attended the event held in Hudson, New York. Despite the trouble in the New York market, the mood was celebratory and optimistic.

StaffJune 22, 2023


The Daily Hit is a recap of the top financial news stories for June 22, 2023.

On the Site

Canopy Growth Sees More Than $3 Billion in Losses

Canada-based cannabis industry leader Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) has reported steep rising losses worth more than C$3 billion. Canopy posted revenue of C$87.54 million for the fourth quarter ending March 31, 2023 versus last year’s $101 million – a decline of 14%. Still, the revenue figure beat Yahoo Finance’s analyst average of $73.1 million for the year. Read more here.

SEC Fines Marcum $10 Million for Improper SPAC Audits

The Securities and Exchange Commission censured accounting firm Marcum LLP for engaging in unethical and improper professional conduct related to Special Purpose Acquisition Corporations (SPAC). The SEC also noted that Marcum offered $10 million to settle the case, which the commission said it will accept it. Marcum is major accounting partner in the cannabis industry. Read more here.

Colorado Cannabis Market Shows First Price Rise Since 2021, Ducking Deflation

After nearly a two-year stretch of deflation, marijuana prices in Colorado are showing the first signs of life since October 2021, according to the Colorado Department of Revenue. The retail price for a pound, which had plummeted from a peak of $1,731 in January 2021 to a historic low of $649 by April 2023, has risen to $703 in June 2023. The price hike is a break from the two-year trend of slumping cannabis prices, which hovered around half of the rates seen before 2022. Read more here.

iAnthus Gets Hit With a RICO

A Maryland-based cannabis dispensary, LMS Wellness Benefit LLC, has accused iAnthus Capital Holdings Inc. (CSE: IAN) (OTCPK: ITHUF) of a scheme to divert at least $4.5 million from its funds into iAnthus’ other business interests, according to a lawsuit filed in federal court this week. In the civil RICO suit, LMS claims that a management firm it had hired, S8 Management LLC, which shares several executives and directors with iAnthus, made unauthorized money transfers from LMS’s account to the failing subsidiaries of iAnthus, Law360 reported. Read more here.

Anti-Cannabis Group Sues New York Over Legalization

A group of anti-cannabis parties has banded together to sue the State of New York including Governor Kathy Hochul, the Cannabis Control Board and the Office of Cannabis Management. The case was filed on June 20, 2023. New York passed the Marijuana Regulations and Taxation Act (MRTA) on March 31, 2021 which legalized adult-use cannabis. Read more here.

Unlicensed Dispensary Landlords Face New Penalties Under Council Bill

The City Council passed a bill Thursday that would hold landlords accountable for renting to illegal marijuana retailers, the latest effort to step up enforcement against unlicensed smoke shops. When city inspectors find an unlicensed shop selling cannabis, cigarettes or other tobacco products, the city could issue a warning to the shop’s landlord. If a subsequent inspection turns up more illicit sales, the landlord could be fined $5,000, followed by $10,000 for any subsequent violations, the bill says. Read more here.

In Other News

Fire & Flower On Sale

Fire & Flower Holdings Corp.(TSX: FAF) (OTCQX: FFLWF) has received approval from the Ontario Superior Court of Justice  under the Companies’ Creditors Arrangement Act for the implementation of a sale and investment solicitation process to be conducted by FTI Consulting Canada Inc., and a stalking-horse agreement between the company and 2707031 Ontario Inc., an affiliate of Alimentation Couche-Tard Inc. Read more here.

Hexo, Tilray Deal Closes

HEXO Corp. (TSX: HEXO; NASDAQ: HEXO) announced today the closing of the second of two tranches of the non-brokered private placement of Series 1 Preferred Shares previously announced on June 1, 2023 and the subsequent completion of the transactions contemplated by the previously announced statutory plan of arrangement under section 182 of the Business Corporations Act (Ontario) involving the Company and Tilray Brands, Inc. (NASDAQ: TLRY) Read more here.

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