💸 High Impact

New York Is Growing Up

The New York cannabis market is like a classic New York story: big ambitions, grand promises, and a lot of drama. After recreational use was legalized in March 2021, expectations were sky-high. Everyone—from investors to small business owners—was eager to grab a slice of the Big Apple’s projected multibillion-dollar cannabis pie. Fast forward to today, and it’s safe to say the market is...a bit hazier than anticipated. But even with its challenges, the New York cannabis market could reach $1 billion in sales in 2024, a tantalizing figure that keeps investors intrigued despite the current turbulence.

New York’s cannabis rollout has been sluggish at best. While the state was quick to decriminalize personal use, the official licensing process for legal dispensaries has been a slow crawl. As of mid-2024, fewer than 100 licensed dispensaries are operating, while a staggering 2,600 unlicensed cannabis shops are thriving across the city. That’s right—there are more illegal stores than bagel shops in Manhattan. Talk about a black-market boom!

So why the bottleneck? The answer lies in New York’s attempt to prioritize social equity in the licensing process. The state’s Conditional Adult-Use Retail Dispensary (CAURD) program was designed to give licenses to those most affected by previous marijuana convictions—a noble cause, but one that’s been tangled in bureaucratic delays and lawsuits. The result? A growing gap between the state’s intentions and the market’s reality.

Let’s not beat around the bush: New York’s cannabis market is currently dominated by unlicensed operators. These “gray market” shops have been popping up like mushrooms after a rainstorm. While legal dispensaries struggle to secure permits and financing, unlicensed vendors are cashing in on the regulatory limbo, selling products without the oversight of testing and taxation.

And here’s where it gets tricky: unlicensed sellers aren’t paying taxes, meaning the state isn’t seeing the anticipated windfall of cannabis-related tax revenue. This is a problem for a state that projected $1.25 billion in cannabis-related revenue over the next six years. Without that cash flow, many of the social equity programs tied to cannabis legalization are left in limbo.

For legal dispensaries that have managed to open their doors, the challenges don’t stop there. Running a cannabis business in New York is expensive. Retail space in New York City isn’t exactly a bargain, and the high costs of compliance, security, and product sourcing make profitability elusive for many.

On top of that, the federal illegality of cannabis means businesses are often cash-only, with limited access to traditional banking services. This makes operations even more cumbersome, as well as riskier—both financially and from a safety standpoint.

Supply chain issues have also been a thorn in the side of New York’s cannabis market. Licensed growers are producing more cannabis than licensed retailers can sell. As a result, much of the product is sitting in warehouses, while demand remains unmet due to the lack of legal dispensaries.

This imbalance is creating frustration for growers and processors, many of whom invested heavily in anticipation of a more robust legal market. It’s also keeping prices relatively high at legal outlets, driving consumers toward the cheaper, unregulated options on the gray market.

The Future: Can the Market Right Itself?

So, what’s next for New York’s cannabis market? The state is working to ramp up the number of legal dispensaries and crack down on unlicensed operators. But that’s easier said than done, especially in a city where street vendors are as iconic as the Statue of Liberty.

Additionally, the federal outlook on cannabis could play a significant role. If cannabis is rescheduled or decriminalized at the federal level, it would open the door to banking services and interstate commerce, giving legal operators a much-needed boost. Until then, the market is likely to remain turbulent.

📈 Dog Walkers

Tilray Launches New Medical Strains In Australia

Tilray Medical has expanded its global reach by launching Redecan, an EU-GMP certified medical cannabis brand, in Australia. This adds to their existing presence with Tilray and Broken Coast, further bolstering their portfolio. According to Chief Strategy Officer Denise Faltischek, this is a significant step toward making premium cannabis accessible worldwide. With strains like Redecan PC THC28 Purple Churro and Space Age Cake, Tilray strengthens its commitment to providing top-quality medical cannabis, enhancing its market dominance across over 20 countries.

1 Millsion Signatures Needed

The PsychedeliCare initiative, registered with the European Commission, is pushing for a transnational legal framework to promote psychedelic-assisted treatments for mental health disorders across the EU. This citizen-driven campaign aims to address the significant unmet needs in mental health care, citing that current psychiatric treatments fail for up to 50% of patients. With mental illness impacting 4.2% of the EU’s GDP (around €600 billion annually), the initiative advocates for EU-funded research into psychedelics' therapeutic potential, as well as ethical guidelines, therapist training, and safety standards.

The movement aligns with global trends, as the U.S. FDA has granted breakthrough therapy status for MDMA, psilocybin, and LSD treatments, and Australia recently approved psychedelic-assisted therapy for PTSD and treatment-resistant depression. To succeed, PsychedeliCare must gather 1 million signatures within a year and meet minimum thresholds in seven EU member states. If successful, the initiative could revolutionize mental health treatment and establish the EU as a leader in psychedelic medicine innovation.

Full Story - GMR

Legalization Of Medical Marijuana Could Save Billions

A new study by Leafwell reveals that nationwide medical marijuana legalization could save $29 billion in annual health insurance costs. Employers in states with legal medical cannabis already pay 3.4% less in insurance premiums, and expanding this across the U.S. would mean billions in savings for both companies and employees. The study suggests that cannabis legalization not only benefits patient care but also improves business efficiency and reduces healthcare expenditures, helping foster a healthier workforce.

Original Article - MM

👾 Number Of The Day

$438,711,633 The $ amount of flower sold in IL over the last 6 months.

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📺 YouTube

Live From DC: Latest on SAFE Banking & Future of Cannabis in Washington

What we covered:

✅ Join us for our latest Trade To Black Podcast at a special time on Wednesday at 1pm EST. Shadd Dales touches down in Washington DC on Capitol Hill with cannabis lobbyist Don Murphy to discuss the latest developments surrounding the cannabis industry, particularly focusing on SAFE Banking.

The banking bill currently has enough votes to pass, raising the question of why it won't receive a floor vote and highlighting the amount of responsibility Senate Majority Chuck Schumer controls at this point.

Additionally, we delve into feedback received from Senators Elizabeth Warren, Reverend Warnock, Tim Scott, and Steve Daines regarding the growing support for marijuana based on potential rescheduling, Amendment 3 in Florida, and whether politicians are altering their views on cannabis following Donald Trump's recent endorsement of the industry.