New York Cannabis Control Board Approves Two More Operators for Recreational Market

NEW YORK — In a remarkably swift meeting on Friday, the New York Cannabis Control Board (CCB) made a significant decision, approving the transition of two additional multi-state operators (MSOs) from the medical to the recreational cannabis market. This move brings the total number of transitioning MSOs to eight, marking a notable expansion in New York’s burgeoning recreational cannabis sector.

Fiorello Pharmaceuticals Inc., a subsidiary of Green Thumb Industries (GTI) (CSE: GTII, OTC: GTBIF), and Citiva Medical LLC, owned by iAnthus Capital Holdings Inc. (CSE: IAN, OTCQB: ITHUF), received unanimous approval from the three present board members to commence recreational cannabis operations immediately. Chris Alexander, the executive director of the Office of Cannabis Management (OCM), informed the board that this approval would enable these companies to begin cultivation, processing, and opening dispensaries for adult use.

Fiorello operates medical dispensaries under the names “FP Wellness” or “Rise” in several locations, including Manhattan, Long Beach, Rochester, and Half Moon. Citiva, on the other hand, runs medical dispensaries branded as “Be” in Brooklyn, Wappingers Falls, Staten Island, and Ithaca, as per the state OCM website.

A GTI spokesperson revealed plans to initiate adult-use sales at their Rochester shop later the same day, which would increase the total number of operational recreational cannabis shops in New York to at least 47. Additionally, the OCM announced that the number of operational recreational dispensaries had risen to 49, excluding GTI’s Rochester location.

The companies are now deliberating on which of their medical dispensaries to convert into dual recreational-medical shops, with each company allowed to choose up to three locations for this transition.

This development follows a surprising outcome at a meeting on December 29, where a 2-2 split vote delayed the entry of GTI and iAnthus into the adult-use market. GTI celebrated the affirmative vote, planning a grand opening event and other activities to mark this historic occasion.

As of now, GTI and iAnthus join six other MSOs authorized to transition into New York’s recreational cannabis market: Columbia Care/The Cannabist Co., Curaleaf, Riv Capital, Cresco Labs, Acreage Holdings, and PharmaCann. Collectively, these eight MSOs could operate up to 24 recreational cannabis shops statewide.

The entry into the recreational market is not without its financial considerations, as a $5 million license fee is required to commence direct adult-use retail sales to consumers. While some MSOs indicated intentions to launch wholesale sales immediately, they remain cautious about the timeline for beginning retail operations.

Two other MSOs, MedMen Enterprises Inc. and Vireo

Health International (operating as Goodness Growth Holdings), also holding medical cannabis licenses in New York, are eligible for recreational business permits. However, it remains unclear if they have applied for the adult-use transition.

This latest development signifies a growing trend in the New York cannabis market, reflecting a shift towards more widespread acceptance and integration of recreational cannabis use. As the state continues to navigate and establish its cannabis industry, these transitions and approvals by the CCB are pivotal in shaping the landscape of cannabis business operations, impacting stakeholders ranging from MSOs to consumers.

The CCB’s swift action and the subsequent responses from companies like GTI and iAnthus underscore the dynamic nature of the cannabis industry in New York, with implications for business strategies, consumer access, and the overall direction of the market. As the situation evolves, the industry remains keenly focused on how these changes will play out in one of the country’s most significant markets for cannabis.