new york medical marijuana
Marijuana Business News

How Much Will It Cost To Get Into The New York Medical Marijuana Industry?

new york medical marijuanaThere is a trend in the emerging medical marijuana industry. The newer the state is to the medical marijuana world, the more expensive it is to crack into that state’s medical marijuana industry. The prime example right now is New York. New York passed a very restrictive medical marijuana bill, and set a very small cap on how many medical marijuana licenses would be granted. There will only be five dispensary licenses for the entire state. That has led some to speculate that the price tag for one of those licenses will be enormous. Per the New York Times:

The competition to acquire the five available licenses will be fierce and expensive. Application costs alone could run to several hundred thousand dollars; start-up costs could top $20 million. “I would suggest that anyone who wants to be serious be prepared to spend at least a million dollars” on an application, said Evan Nison, 24, a lobbyist and consultant for cannabis companies and a founder of the New York Cannabis Alliance, which advocates changing the state’s marijuana laws. Richard N. Gottfried, a Democratic state assemblyman from Manhattan who led the long fight to legalize medical marijuana, cited an unwritten formula of government regulation. “When you make a statute very restrictive — and the governor did that in the last hours — you raise the stakes and create a need for more lawyers and consultants,” he said.

Out-of-state firms able to show they have run successful cannabis operations elsewhere will have an edge in the licensing process. But any hope for quick profits will be limited by the small number of conditions for which New York is allowing the drug’s use.

Still, the arrival of medical marijuana opens the door to a potentially huge market, said Derek Peterson, 40, a former senior vice president at Morgan Stanley Smith Barney. Mr. Peterson now heads Terra Tech, a publicly traded company that already operates a five-acre hydroponic growing facility in New Jersey turning out basil, kale and other produce while awaiting the opening of more local dispensaries, which Gov. Chris Christie opposes.

When a state passes a bill as restrictive as New York’s, and limits the amount of people that can be involved in the industry, the end product is bad, and patients are left to suffer as a result. That’s how it has played out in New Jersey where supply shortages are normal, and the meds are subpar. Unless New York changes their program to allow more people into the industry, it will follow in New Jersey’s footsteps. Licenses shouldn’t go to the highest bidder, but because more often than not, the highest bidder has no clue how to grow or sell medical marijuana.

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  • Paranoid Android

    Ugh… Fucking Cuomo. As a NY I am going to vote or him because Astorino is worse, but I really wish Teachout beat him in the primary. Because she was awesome, and both Cuomo and Astorino are more corrupt than my HDD. Which, to give you an idea of scale, I recently defragmented. Yeah, bet you haven’t heard that word in a while.

    Seriously though, they are both horrible people who are the epitome of bad politicians.

    • wowFAD

      Cuomo could use a good defragmenting. Given the 11th hour demands from his office that crippled NY’s medical cannabis bill, it bothers me on a visceral level whenever I hear Cuomo giving lip service to the patients whenever he says crap like “We need to get this done as quickly as possible.” As if anyone in NY who followed the progress of the bill believes anything that swindler has to say on the subject.

      • Lawrence Goodwin

        I find it difficult to accept Gov. Andrew Cuomo’s excessive restrictions, too, but he’s not a “swindler.” Please look at the brighter side: One year ago today, Mr. Cuomo would not even have read the Compassionate Care Act let alone sign it. A mere 8 months later, after hearing from thousands of New Yorkers who support medical cannabis, adorable little Amanda Houser held the pen as Mr. Cuomo actually signed the law. In that generous act, the governor instantly opened a door to legal cannabis cultivation in New York–and the hundreds or thousands of jobs those magnificent plants will supply–for the first time in decades, while giving many families real hope. He deserves a lot of credit for at least having a heart. Also, his actions are largely motivated by the men in charge of the law’s actual implementation, state Health Commissioner Dr. Howard Zucker, who simply will never, as a physician, condone New Yorkers inhaling the smoke of inflamed plant material into their lungs; and State Police Superintendent Joseph D’Amico, a hard-working and rather honorable guy despite his support for the anti-cannabis tyranny. Most of our state and local officials still ignore sensible ideas from such groups as Law Enforcement Against Prohibition. But they can never do the same to New York voters who put aside differences and unite, especially when they are led by legions of determined ladies.

  • Sarijuana

    You would think they would have learned a lesson from NJ. It seems they do not have the patient in mind, and they set up the program for failure. Was this just a political panacea?

  • mike1188

    This is only sesigned for the millionaires who can afford it. This medical marijuana program will not work for the ordinary person who needs it

    • Captain Obvious

      That is the point of this corrupt legislation. So the chronie fascists can pretend they are capitalists at the needless expense of others.

  • Johnny oneye

    There never is a shortage of
    Anything in ny ,you can get any drug delivered 24/7
    When GW Pharma gets fast tracked at FDA
    They will sell cannabis oil
    And everyone else is criminal

  • HeyJah

    I think it’s a shame – just wrong – when Cannabis gets handed to big money. Spread the opportunity – keep it a cottage industry.

  • Free market.

  • Jonathan

    Tweed TWD is a great company from Canada with huge sales. Check them out.