What’s Next for New York Cannabis in 2024?
There’s Still Hope In New York’s Uphill Battle for Cannabis
The first license application window for New York’s cannabis program closed on December 18th. But the (stress? turmoil? exhaustion?) …let’s call it adventure…of cannabis licensing in New York is far from over!
As of this writing, we have another industry lawsuit to grapple with and we have a significantly high number of New York cannabis application submissions to sort through across the multiple license types offered in this application window. So, with all this news and the landscape constantly changing, what’s next? What can you be doing now to improve your odds in New York, get your cannabis business up and running sooner, and be proactive in the weeks and months ahead?
Finding New York Cannabis Property is Top Priority
Some may already have this one figured out. For cannabis cultivators, select cannabis processors, and distributors, it was a requirement for the application that a property be secured either through lease or ownership. However, for type three processors, microbusinesses, and cannabis retailers, a property was not required. That doesn’t mean you can go without property forever though!
If you’re awarded a provisional cannabis license, you will have one year from the date of the issuance of the license to identify a property. Everyone wants to get up and running sooner rather than later, and to do that, a property needs to be not only identified but secured too through a lease or mortgage. Now is the time to begin looking at properties which could suit your needs, as we have learned the real estate search can be an arduous one.
Planning for the Plans: Your License Application was Just the First Step
Plans? But I submitted the license application? Isn’t that all I need to do for the Office of Cannabis Management? Not so fast. The Office is still requiring plenty more from applicants and licensee holders to not only begin their operations, but to maintain the license and be granted approval for renewal. There are multiple plans identified within the finalized New York regulations as well as within the application portal itself. These include an operating plan, an energy and environmental plan, and a community impact plan.
The Office has a, let’s say, “checkered” past when it comes to defining and detailing which plans will be required and when. But the regulations are clear that these plans will be required at least at some point for license holders. During this period of time while we wait for additional details from the Office and the first licenses are starting to be issued, it can be a great opportunity to start working on these plans as outlined in the regulations or finding someone who can assist with these for you. Luckily, we at Canna Advisors are well-prepared and well-qualified to tackle each and every one of these plans and take the stress of writing compliant plans off your shoulders.
Create Financial Models to Find Investors
Starting a cannabis business can be a lucrative investment when done well and especially if the business can capitalize on the first-mover advantage. However, the old adage can prove true here: it takes money to make money.
Fundraising, finding investors, and financial modeling are some of the biggest factors for success for countless prospective cannabis businesses. As individuals either wait to be awarded a license, or work to get their operations up and running, identifying people and successfully bringing them into the business is something which can be done right now. And will likely be necessary prior to operations so purchasing equipment, staffing your team, identifying a property, and business buildout, etc. can be accomplished. Now is an ideal time to begin this work if funding hasn’t been ironed out or if financial modeling is still needed in the future.
Define Your True Parties of Interest (TPI)
You’ve submitted your application. Have you filled out your TPI Disclosure Form? Following the application submission, all true parties of interest (TPI) as detailed in the application itself should have received an email from New York’s Office of Cannabis Management that they have been identified as part of the application. It’s a requirement that all TPIs fill these disclosure forms out and they should do so in an expeditious manner. More information can can be found through New York’s Cannabis TPI Hub. So if you or other TPIs on your application have not submitted your TPI Disclosure Form, do so now!
Partner with New York’s Cannabis Experts to Get it Done Right
There’s plenty to be doing right now in New York, and plenty more that will be required in the near future in the Empire State. Luckily, Canna Advisors can assist with your one-off New York cannabis questions, your financial modeling and business planning, and your service needs pre- and post-licensure. With a New York Office in Manhattan as well as decades of East Coast cannabis experience, our team of New York consultants are ready to put your dream in motion.
Contact Canna Advisors to ensure your cannabis business is prepared for whatever the OCM has to throw at it and don’t forget about our single-block hourly consulting for those just needing a little extra support.