With the Commonwealth recently issuing more licenses to medical marijuana dispensaries and grower-processors, multi-state operators have won out over their smaller, local rivals. Most of the Pennsylvania-based dispensaries that applied for the 23 licenses during phase two were shutout. Of those granted licenses, 18 went to companies that operate in multiple states.
Steve White hasn’t applied for any alternative treatment center licenses in New Jersey. But through a series of acquisitions made by his Arizona-based company Harvest Health & Recreation, he’s now arguably one of the biggest players in the state’s cannabis industry.
The potential for a ballot question next year asking the public to decide whether or not to legalize recreational marijuana foreshadows huge spending by independent, outside groups.
Keep in mind that it was just three years ago that New Jersey had its most expensive ballot contest ever- a $25 million election in which voters balked at allowing casinos outside of Atlantic City.
A ballot initiative involving legalized marijuana also would surely invite millions of dollars of spending by special interests attempting to influence the people to support or oppose legalization.
It took a big push by major corporations to bring a whole new industry- casinos- to New Jersey. Marijuana interests may need a similar boost.
While medical marijuana already has been legalized in the state, legislation allowing recreational use has run into stiff resistance even though pro-marijuana spending on lobbying rose nearly 319 percent to $1.4 million in 2018.
Governor Murphy and legislative leaders are continuing to hold meetings to try to rescue the bill, which Senate President Steve Sweeney gave only a 50-50 change of passage on April 29, 2019.
Canopy Growth has spent $300 million on its option to buy Acreage for $3.4 billion, following the triggering event. The terms of Harvest Health’s deal with CannaPharmacy haven’t yet been disclosed.
It should also be noted Ontario-based Canopy received a $4 billion investment last year from Constellation Brands, the Fortune 500 alcohol company which produces Corona and Modelo beers, Svedka vodka as well as Woodbridge and Robert Mondavi wines, among others.
A deal to create America’s largest marijuana-dispensary chain may be derailed as Pennsylvania regulators take a closer look at the company’s operations in the state.
Arizona-based Harvest Health and Recreation of Arizona, which has cannabis operations in multiple states, announced last week that it was acquiring CannaPharmacy Inc., a company with presence in Pennsylvania, New Jersey, and neighboring states.
The action was prompted by what officials called “blatant misrepresentation” in a statement issued by Harvest Health & Recreation, which announced Tuesday that it is acquiring a Pennsylvania weed company.
Harvest claimed that its multimillion dollar deal to acquire CannaPharmacy would make it one of the biggest marijuana companies in the nation. As part of the deal, Harvest said it would gain ownership of a marijuana growing operation in Reading. In addition, the company claimed it owned rights to open a total of 21 retail marijuana dispensaries.
An Arizona-based vertically integrated cannabis company is bringing its $500 million war chest and rolling up marijuana dispensaries and grow/manufacture operations on the East Coast with an agreement to acquire a local company with marijuana licenses in Delaware, Maryland, New Jersey and Pennsylvania.
Harvest Health and Recreation, a vertically integrated cannabis company, announced Tuesday it will acquire CannaPharmacy which owns or operates (through management companies) cannabis licenses in New Jersey, Pennsylvania, Delaware, and Maryland and holds a minority interest in a pending licensee in Colombia.
For New Jersey the acquisition includes one of six operational – and 12 awarded by the state – fully vertical licenses, permitting cultivation, retail sales and manufacturing.