Why New Jersey Is An Interesting Market For Chemistree

  • Friday, August 30th, 2019

The American Cannabis industry is growing fast presenting numerous opportunities for cannabis companies. Medical marijuana is already legal in over 30 states and so far 10 states have legalized recreational use with around four in the process to legalize adult use.

New Jersey is among the four states on the path of legalizing recreational use of marijuana. Several companies have been positioning themselves for this massive opportunity and Chemistree Technology Inc. has not been left behind.

Massive opportunity in New Jersey ahead of adult-use legalization

Chemistree is eyeing New Jersey because of the opportunities that will be available in the state once adult-use marijuana is legalized. The state already has support for three bills from the Senate and Assembly to legalize adult use. The move will create an opportunity for over 100 new marijuana growers to meet the annual markets that have been estimated to be around $850 million by next year.

At the beginning of June, New Jersey announced that as from July 1st, they were opening applications for around 108 new medical marijuana licenses. Out of the total licenses to be offered 54 will be dispensary licenses, 30 processing licenses, and 24 growing permits. This includes three tiers of cultivation licenses.

Following the announcement, Chemistree has already made a move through its partner Applied Cannabis Sciences. Applied Cannabis Sciences has made an application for all the three types of licenses (cultivation, manufacturing and dispensary licenses). The company missed out during the last licensing round but was within the top applicants. It is thus among the favorites to be licensed in this second round.

Chemistree’s strategic Investment in New Jersey

Chemistree entered into a partnership with Applied Cannabis in April to help it in the qualification process for a license. Chemistree acquired an initial 10% interest in Applied Cannabis Sciences. The medical retail dispensary has an experienced team of professionals in medicinal cannabis and whose founder, Nico Escondido is also a Chemistree director. The plan is to establish a vertically integrated model for both companies leveraging the depth and passion of both companies highly skilled team members.
Speaking about the partnership Karl Kottmeier the president of Chemistree stated that this was an opportunity for the company to expand beyond Washington and California. It will be a great opportunity for the company to expand into a key market and work more closely with Nico Escondido.

A voter referendum on adult-use expected in 2020

Currently, only medical marijuana is legalized in New Jersey. However, headwinds from the state indicated that full legalization of recreational adult use could soon be realized. Governor Phil Murphy has been vocal about recreational-use marijuana. The Garden State expects a voter referendum next year on adult-use legislation. With these developments, most cannabis companies will be looking to take advantage of the opportunities the New Jersey cannabis market presents.

Chemistree is well-positioned as an investment company in the US and looks to fully take advantage of the growing cannabis market. Its aggressive investment approach has enabled it to enhance its international footprint and presence through acquisitions and development of vertically integrated assets in cultivation, processing, retail and branding.