New York’s Market Does Not Support The Cannabis Business

New York’s Market Does Not Support The Cannabis Business

New York has been always considered as a precursor in progressive mindsets. However, in contrast to its West Coast counterpart California, it seems that the state does not show open-mindedness to cannabis. It has passed the Compassionate Care Act and authorized the use of medical marijuana in the state since 2014. However, the extremely small size of the present market for medical marijuana represents that the state has not expected it at all. While New York holds a population of approximately 20 million people, the number of authorized medical marijuana companies in the region are only 10, which is quite disappointing.

The ArcView Group’s General Partner from New York Jeanne Sullivan highlighted the diverse reasons behind the lack of licenses. The most important reason being the expensiveness of these licenses, numerous firms are compelled to shift their business in order to become successful in this sector. Sullivan stated, “The recent one I know about that changed hands went for about $60 Million, which is far beyond the reach of the majority of distinct entrepreneurs.” Thus, bigger multistate operators such as MedMen are seen operating the majority of these authorized medical marijuana businesses in New York. However, even after getting support from the big firms in the industry, the New York market has not established strongly.

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On a similar note, Lebanon County stopped the veto on the use of medical marijuana for those who are on probation. Recently, the county had to go through a lawsuit by the American Civil Liberties Union (ACLU) due to its latest policy that banned the use of medical marijuana for those who are on probation. Reportedly, about 3 individuals—who are registered patients for medical marijuana and are on probation—filed this charge. This charge was attended by the 52nd judicial district of Lebanon County.

After the court order, the Executive Director of ACLU of Pennsylvania Reggie Shuford stated, “Our customers and others similar to them are in extreme need of their drugs. Medical marijuana assists them to live fuller, healthier lives, and the policy of Lebanon court is both state law’s infringement and unnecessarily unkind. Today’s action of the [State] Supreme Court was the apt thing to do.”

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