When seven of New Jersey’s largest cannabis operators, previously operating under its medical program, expanded to serve adult-use customers, they promised to prioritize patient care. Unfortunately, five MSOs were found breaking that promise when the state’s Cannabis Regulatory Commission (CRC) reportedly fined them $360K for allegedly processing adult-use transactions during hours reserved for medical patients.
Acreage
Acreage Holdings, a multi-state cannabis operator with operations in New York and California, made 257 adult-use sales on the first day of recreational sales at its Egg Harbor Township and Williamstown stores when it shouldn’t have. Acreage’s two dispensaries The Botanist and Prime are among the first licensed to sell recreational weed in the state of New York.
Acreage, owner of The Botanist dispensary brand, is a nationally recognized provider of top-quality medical and recreational Cannabis Products. Its portfolio includes The Botanist, Superflux, Tweed, Prime, and Innocent brands in the U.S.
As New Jersey’s legal Cannabis Market expands to include recreational sales, retailers must prioritize patients and not cut corners with their products. That is the message New Jersey regulators sent with a series of harsh fines against five of the nation’s biggest cannabis operators.
Curaleaf
In the United States, fully vertical cannabis MSOs are on the rise. Thanks to their large capital base, extensive distribution networks, and loyal customer base, these businesses can open and operate stores with minimal overhead expenses.
Legal cannabis sales present legislators and regulators with many unanswered questions. Can these massive businesses really promote social equity?
Curaleaf’s business strategy remains focused on cultivating quality cannabis products that are sold through licensed dispensaries. It boasts an expanding portfolio of state and federal licenses to cultivate, process, and distribute Medical Cannabis across various markets.
The Company maintains a dedicated government relations department that cultivates relationships with local and state regulators, industry groups, and elected officials in order to effectively monitor and participate in the regulatory and legislative processes.
Green Thumb Industries
GTI, headquartered in Chicago, Illinois, manufactures and sells medicinal and recreational cannabis across America. With 16 manufacturing facilities and 66 retail locations in 14 states, it has achieved significant success.
Additionally, it markets and distributes a portfolio of cannabis consumer packaged goods brands under the names &Shine, Beboe, Dogwalkers, Doctor Solomon’s, Good Green, Incredibles, and RYTHM.
Green Thumb is one of the largest MSOs in America, operating across 13 states and having strategic partnerships with some top brands. The business is experiencing economic growth and should continue to expand soon – particularly within limited license markets.
Verano
New Jersey regulators fined five multistate operators $360,000 for allegedly making nearly 3,200 recreational sales during hours that should have been reserved for medical cannabis patients, Bloomberg News reported. This occurred as New Jersey prepared to start adult-use cannabis sales in April.
CRC Executive Director Jeff Brown issued violation notices to Curaleaf, Verano, Ascend, and Green Thumb Industries alleging those transactions were “to the detriment of medicinal patient populations.”
According to Curaleaf spokesperson Stephanie Cunha, they acknowledged their responsibility for those citations and paid them. Other operators did not respond to requests for comment.
Ascend Wellness
Ascend Wellness Holdings (OTCQX: AAWH) is a multi-state operator that operates medical and recreational dispensaries across multiple states. In its most recent quarterly report, Ascend reported net revenue up 14.1% year-over-year to $111.2 million due to an increase in third-party wholesale sales as well as conversion of retail stores into adult-use cannabis sales outlets.
Ascend has also highlighted its commitment to sustainability and its environmental, social, and governance programs. Ascend’s long-term aim is for wholesale sales to account for 50% of total revenue by increasing market share in wholesale distribution, selling higher volumes of products directly to wholesale customers, and expanding into higher-value product categories sold to this audience.
