CannaMLS ID: 262030
Created | Updated
Price
$ 500,000
Recently licensed adult-use cultivator in New York available for partnership, management contract, investment, financing, or partial ownership sale. 261 total
Property is: For sale
The property may be available both for purchase or for lease. Contact listing author for details.
Property type: Agriculture, Industrial
Recently licensed adult-use cultivator in New York available for partnership, management contract, investment, financing, or partial ownership sale. 261 total cultivator licenses have been given out as of 9/28/22. These are the very first Adult-use licenses that have gone out in New York. All Cultivation licenses from this round are the same; they permit 1 acre outdoor or 25,000 sqft in a greenhouse (not indoor) and you can switch back and forth between the two at any time. The canopy limit only applies to flowering plants, not propagation or mother plants. The cultivation license also allows for the processing, packaging, and wholesale distribution of flower products including prerolls directly to retail dispensaries which are anticipated to come online by the end of the year. Essentially this cultivator license type allows you to have your own brand all under one license. If you are an existing brand in another state this is your chance to have products on shelves in New York by the end of the year and to have the extremely valuable opportunity to gain very early market share as one of the first operators in New York. You can also sell to conditional extraction processors which are anticipated to come online over the next few months.
The New York law is very unique. It severely limits the ability of large MSOs to dominate the market. The conditional cultivation license must remain at least 51% owned by the original licensee for two years. There is no vertical integration allowed. Cultivation, Processing, and distribution license holders are not allowed to own or have financial interest in retail dispensaries. Entities are only allowed to have a financial interest in one cultivation license. The New York market was set up to be preserved as a cottage industry for the foreseeable future. Distributors are not allowed to make dispensaries sign contracts to provide minimum amounts of shelf space to a certain brand. This is great for small and medium sized operators because they can spend their resources and time on developing their own business without the fear of being "pushed out" buy large MSOs with hundreds of millions of dollars to spend.
New York cultivation licenses are extremely flexible in where they can operate. All that is required is that they are licensed from the state. Local governments are preempted by law from having any control over them in any way. They may not require them to pay any extra fees. The licensee is currently allowed to start operations immediately.
A prospectus which includes a more in depth overview of the New York Adult-Use law as well as an overview of my farm's existing infrastructure and prediction of its market capitalization over the next two years is available upon request.
Property is: For sale
The property may be available both for purchase or for lease. Contact listing author for details.
Property type: Agriculture, Industrial