Canopy Growth Corp (WEED)

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New York cannabis regulators vote to allow multistate operators into the market

https://www.proactiveinvestors.com/companies/news/1026432/new-york-cannabis-regulators-vote-to-allow-multistate-operators-into-the-market-1026432.html

New York's adult-use cannabis market is set to expand with the addition of multi-state operators

The New York Cannabis Control Board voted Tuesday to allow non-social equity applicants to apply for licenses to cultivate, manufacture, and sell adult-use cannabis.

This would allow major medical marijuana companies in the state such as Acreage Holdings Inc. (CSE:ACRG), Curaleaf Hldgs Inc. (CSE:CURA, OTCQX:CURLF), Columbia Care Inc (CSE:CCHW, OTCQX:CCHWF, NEO:CCHW) and Cresco Labs Inc. (CSE:CL, OTCQX:CRLBF) to enter a market currently flush with illegal dispensaries and a small number of smaller, legal entrepreneurs.

When New York legalized marijuana in March 2021, the state restricted who could apply for licenses to those who had prior marijuana convictions and were involved in the war on drugs prior to legalization.

Licenses were distributed through the Conditional Adult-Use Retail Dispensary (CAURD) program, but the program faced legal challenges from medical marijuana companies that stunted the growth of the legal market.

In its place, thousands of illegal dispensaries popped up.

Now, multistate operators will be able to access one of the largest cannabis markets on the East Coast, which analysts expect to reach $7.07 billion by 2025.

Regulators will accept applications for retail or microbusiness licenses from October 4 through December 23.

Meanwhile, many social equity applicants still haven’t been able to open their businesses due to delays and legal issues regarding the CAURD program.

Shares of Acreage Holdings stock swooned more than 15%, while Cresco Labs stock dipped over 3%. Curaleaf and Columbia Care shares fell 0.8% each.

RUMP !