Two New Jersey attorneys are expecting positive growth after Gov. Phil Murphy signed a bill into law Monday that would expand investment in cannabis dispensaries owned by minorities, women or disabled veterans.
The new bill (A4151/S2766) expands the existing law to allow up to a 35% interest in up to seven New Jersey cannabis dispensaries. Investor-ownership arrangements already existed for minority, women’s and disabled-veterans’ medical cannabis dispensary businesses, but, now, current licensees and cannabis funds will be allowed to invest in a greater number of business at a higher equity stake.
Assemblywoman Verlina Reynolds-Jackson said that the new law will promote equity, diversity, and inclusion in New Jersey’s adult-use cannabis industry.
“Lack of access to capital is one of the biggest barriers women, minority, and disabled veteran entrepreneurs face when trying to become business owners, and it contributes to a concerning lack of diversity across the business community,” stated Reynolds Jackson.
Brian M. McGovern a partner at Archer & Greiner, called the change a step in the right direction.
“In New Jersey, we have a quickly maturing cannabis industry,” McGovern said. “It is about ready to explode with applicants receiving their awards and approvals and getting ready to actually come online and open their retail stores and growth facilities.”