There could be delays in the introduction of legal cannabis in New Jersey: will neighboring states benefit from it?

By Nina Zdinjak

In the November 2020 election, approximately 67% of New Jersey adults voted to legalize cannabis.

The new cannabis law, signed by Governor Phil Murphy in February, had an August 21 deadline for the New Jersey Cannabis Regulatory Commission to create its rules and regulations. The commission complied.

Photo by Jametlene Reskp via Unsplash

However, of the state’s 565 parishes, about 32 cities and towns have chosen not to allow recreational cannabis programs to be set up in their cities, even though they have the right to change their choices and get back on track in the future.

Cantor Fitzgerald analyst Pablo Zuanic shared his notes from last week’s New Jersey cannabis conference in his analyst note on Sunday.

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MSO operators in advance if the program starts on time, which becomes the grandfather of the adult cannabis program.

According to Zuanic, these incumbents will receive a notable advance on both the 24 new alternative treatment center licenses and the new applicants.

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For now, There are 12 licensees enrolled in the program, only two of which are not fully operational: Justice Grown, iAnthus Holdings. The remainder includes two privately held companies – Breakwater and Harmony – and eight operators from multiple states – Acreage Holdings, Ascend, Wellness Holdings, Ayr Wellness, Columbia Care, Curaleaf, Green Thumb, TerrAscend, and Verano Holdings.

There are currently 22 stores in New Jersey, but Zuanic said he believes all ten active operators will have three stores by the time the new program starts.

Photo by Howard Kingsnorth / Getty Images

Possible delays

Zuanic also offered a possible scenario where the start of recreational cannabis sales in New Jersey is being delayed by litigation, with the state Cannabis Regulatory Commission (CRC) having to assess the capacity of incumbents to meet the demands of both medical patients as well as by future leisure consumers. Another reason for the delay could come from the townships, which remain in opt-out status until the deadline.

“What is happening in New Jersey will / could spur the start of recreational sales in neighboring states that have already legalized rec (Connecticut, New York, Virginia) or may be in the future (Pennsylvania, Maryland),” Zuanic said, adding could also have an impact on the draft rules, depending on the plans of the CRC.

“We continue to believe that NJ rec sales will only start slowly if we orient ourselves to one of the required ‘three aces’ (accessibility, range and affordability), although the number of approved stores may only start in teenagers lies. “, Zuanic concluded.

This article originally appeared on Benzinga and was republished with permission.