As the state of New York contemplates legalizing cannabis for recreational use, medical marijuana companies are working on persuading the state’s legislature to afford them a stake in the new market. Rather than wait for new marijuana growers to begin from the ground up, the medical marijuana companies stated that they could utilize their already existing infrastructure to provide the new market with a boost.
The New York Medical Cannabis Industry commissioned a pair of reports that assert that allowing medical marijuana firms into the recreational marijuana market in the state as soon as possible would jumpstart new employment opportunities and provide the industry with a boost.
Ngiste Abebe, who is the vice president of medical marijuana company Columbia Care and also happens to be the group’s president, stated that by using the infrastructure and knowledge of the existing providers, New York could bring economic growth to the state at a crucial time in its recovery while also strengthening its reputation as a progressive leader.
Democrats in the state are currently negotiating a system for taxing and regulating the production and sale of cannabis for adult recreational use. The Democrats involved on the issue are confident that they could come to a full legalization agreement by March’s end.
However, this may not be so easy to achieve given that Gov. Andrew Cuomo has a different proposal to legalize cannabis, which conflicts with the legislators’ measure. In the recent past, the governor has clashed with legislators over how the tax revenue generated from the new recreational cannabis industry should be utilized.
There may still be hope though. With Connecticut, Vermont and New Jersey having legalized marijuana, the state of New York is under new pressure to legalize the drug. Legislators in the state are seeking new ways to generate revenue in the long term from the new industry.
Reports estimate that, depending on demand, the annual revenue potential of the state of New York’s recreational cannabis market will be between $300 million and $700 million. Analysts forecast that the state’s recreational cannabis industry will reach its maximum revenue potential three or four years after legalization.
This is where medical marijuana companies come in. The companies assert that they could use their infrastructure, which is already in place, to help supply the new recreational market in the state at the beginning, until more growers enter the market. The companies also noted that they already had the means to grow more marijuana as well as the equipment needed to test its potency, to package products and to distribute them to retailers.
However, they would need authorization from the legislature to enter the recreational market, which some legislators are not buying, arguing that keeping the recreational and medical cannabis industries separate is the best option.
As lawmakers in the Empire State discuss the finer details of cannabis legalization in the state, companies in other jurisdictions that have regulated cannabis markets are reaping massive benefits. Golden Leaf Holdings Ltd. (CSE: GLH) (OTCQB: GLDFF), for example, registered 42% year-over-year growth in the third quarter of 2020, a sign of better things to come.
NOTE TO INVESTORS: The latest news and updates relating to Golden Leaf Holdings Ltd. (CSE: GLH) (OTCQB: GLDFF) are available in the company’s newsroom at https://cnw.fm/GLDFF
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