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New York Cannabis Consulting

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New York Cannabis Market

By The Numbers

$2.6B

Adult-use market estimate by 2027

2.5M+

Cannabis consumers in the last year

$119.1M

2021 medical sales estimate

38

Medical dispensaries open as open as of March 2022

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We’ll Help You Grow

From our offices in New England, we help clients nationwide navigate the complex and evolving challenges of starting and operating a cannabis business.

Whether you’re launching a dispensary, looking to develop seed-to-sale software, or you’re looking to elevate the efficiency of your existing business with the help of an outsourced professional who’s familiar with the industry, we’re here to help.

STRATEGY

  • Strategic Advisory
  • Interim‭ ‬&‭ ‬Fractional Management
  • Exit Planning‭ ‬&‭ ‬Strategy
  • Mergers‭ ‬&‭ ‬Acquisitions Advisory
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Finance

  • Financial Planning‭ ‬&‭ ‬Analysis
  • Financial‭ ‬&‭ ‬Cash Flow Modeling
  • Fractional CFO Services
  • Business Valuation
  • Financial Reporting‭ ‬&‭ ‬Processes
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Operations

  • Revenue Growth
  • Cost Improvement
  • Data Analytics
  • Project Management
  • Corporate Policies‭ ‬&‭ ‬Procedures
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Turnaround Management

  • Restructuring Advisory
  • Performance Improvement
  • Lender Advisory
  • Fiduciary Services
  • Crisis Management
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Startups

  • Market Research
  • Business Planning
  • Investor Relations
  • Product Development
  • Hiring‭ ‬&‭ ‬Resource Augmentation
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Economic Development

  • Economic Impact Analysis
  • Government Efficiency
  • Grant Writing
  • Tribal Business Consulting
  • Legal Cannabis Consulting

Historical Overview

July 5, 2014

Compassionate Care Act

Governor Andrew Cuomo signs law permitting medical patients to use and possess medical cannabis

December 23, 2015

Medical Marijuana Patient Registry

The DOH launches the online Medical Marijuana Patient Certification and Registration System

January 7, 2016

First Sale

Eight dispensaries state-wide begin sales to qualified patients

August 1, 2017

Additional Players Enter Market

The DOH permits five new MSOs to enter the New York market

December 8, 2017

New Products are Made Available for Sale

The NYS Dept. of Health announces topicals, chewable edibles, and non-smokable forms of plant material are allowed for sale

July 12, 2018

Opioid Replacement Becomes a Qualifying Medical Condition

The Dept. of Health allows registered practitioners to certify patients to use medical cannabis as a replacement for opioids

March 31, 2021

Marijuana Regulation & Taxation Act (MRTA)

Governor Cuomo legalizes cannabis use and possession for adults 21 years and older. He also signs legislation making smokable flower newly legal

What to Expect & Recent Developments

  • New York’s attractive market is home to over 19 million residents and is highly touristed from around the United States and the world.
  • Municipalities had a set deadline of December 31, 2021, to opt-in or out of allowing adult-use retail and/or on-site consumption businesses within their limits.
  • Sales tax is set to begin at 13%. 9% will be allocated to the state, while 4% will go to municipalities. Wholesale tax will be placed on flower, edibles, and concentrate sales and is dependent on the amount of THC in each sale.
  • Currently, there are no caps on any license types in the adult-use market.
  • 50% of all licenses will be awarded to social equity applicants. The first 100 to 200 retail licenses will be awarded to applicants with previous cannabis-related convictions.
  • Governor Hochul and other New York government officials completed their nominations for the Office of Cannabis Management (OCM) and the Cannabis Control Board (CCB) in mid-September 2021. The CCB has been meeting monthly since October 2021.
  • CCB members have estimated that initial adult-use licensing regulations will be released sometime in fall 2022.
  • In February 2022, Governor Hochul signed a bill allowing current New York hemp farmers to receive conditional cultivation licenses to begin growing cannabis for the adult-use market.

Adult-Use Market Overview

The New York adult-use market could see many retailers and cultivators with no current statewide cap on any proposed license types. Compared to the state’s medical market which only allows 4 dispensaries and 1 cultivation facility per license, we expect a major shift towards the adult-use market over time as existing medical storefronts convert and patients do not renew.

The adult-use market is yet to be implemented and presents significant growth opportunities: adult-use sales are projected to reach $2.6B by 2027.

Governor Hochul projects “thousands and thousands” of jobs will be created due to the adult-use market’s implementation. Prior to his resignation, Governor Cuomo estimated 60,000 jobs would be created within New York’s adult-use market.

New York expects to collect over $245 million in taxes annually from adult-use sales by 2025 to be used as follows:

  • To state schools through the State Lottery Fund 40% 40%
  • To community reinvestments 40% 40%
  • To public education and drug treatment 20% 20%
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Marijuana Regulation & Taxation Act (MRTA)

Taxation

Enhanced Sales Tax

  • 9% to the State
  • 4% to Municipalities

At-Home Cultivation

New York State residents will be able to grow a maximum of 6 plants at home per person (12 max per household)

No License Caps

The Office of Cannabis Management and Cannabis Control Board have not placed caps on any license types

Municipal Opt-Outs

Municipalities had until December 31, 2021 to opt-out of allowing recreational sales and on-site consumption

Vertical Integration Not Permitted

Unlike the State’s medical program, adult-use cannabis businesses in New York will not be allowed to vertically integrate

Delivery

Home delivery will be allowed for adult-use sales

On-Site Consumption

Products my be consumed in a consumer’s home privately or at an on-site consumption site that is licensed by the State

Emphasis on Social Equity Applicants

The State has committed to award 50% of all licenses to social equity applicants

  • 9% to the State
  • 4% to Municipalities

New York Adult-Use Cannabis License Types

There are 9 classes of licenses available

Key State Rules

  • May also apply for one processor license and one distributor license to distribute own products
  • The CCB may allow cultivators to perform minimal processing without holding a processor license
  • License cap yet to be determined by the CCB

Key State Rules

  • Able to conduct processing activities at multiple locations under one license
  • License cap yet to be determined by the CCB 

Key State Rules

  • Must be comprised of New York state residents
  • Members can not be a part of more than one licensed cooperative
  • License cap yet to be determined by the CCB

Key State Rules

  • License holders will have limited cultivation, retail, production, distribution and delivery capabilities

  • Size and scope TBD by forthcoming CCB regulations

  • Social equity applicants will be favored

Key State Rules

  • Any distributor who has a direct or indirect involvement in a licensed cultivator or processor may only distribute products cultivated and processed by that licensee 

  • License cap yet to be determined by the CCB 

Key State Rules

  • May sell clones, immature plants, and seeds to cultivators and cooperatives

  • Social equity applicants will be favored

  • License cap yet to be determined by the CCB

Municipal Opt-Outs

New York municipalities had a set deadline to opt-in or opt-out of allowing adult-use retail and on-site consumption businesses within their municipal limits

MUNICIPAL OPT-OUT FRAMEWORK & RESULTS
  • The MRTA allowed New York municipalities to decide whether to allow adult-use retail and/or on-site consumption businesses within their limits. Municipalities had a deadline of December 31, 2021, to make their decisions.
  • A municipality could opt out of both adult-use retail dispensaries and on-site consumption licenses, or just one of them (for example, allow retail dispensaries but not on-site consumption licenses); Municipalities could not opt-out of other adult-use license categories.
  • Municipalities who did not opt-out by the deadline are considered opted-in and will not be able to opt-out in the future.
  • Current Count of Opt-Ins and Opt-Outs by License Type (as of March 21st, 2022):
  • Retail –751 municipalities opted-in (~50% of all municipalities)
  • On-Site Consumption –633 municipalities opted-in (~42% of all municipalities)
  • Several highly populated municipalities opted out of both retail and on-site consumption, including Hempstead,Oyster Bay, and Islip.
  • Municipal Opt-Out Framework & Results
  • Source: US Census Bureau. Marijuana Regulation and Taxation Act, Rockefeller Institute, Opus Consulting

New York Retail Municipalities

Top 10 Opted-In Municipalities (By Population)

Chart by Visualizer

New York Onsite Consumption Municipalities

Top 10 Onsite Consumption Municipalities (By Population)

Chart by Visualizer

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Projects

Leadership Team

Jacques Santucci , President

As the President of Opus Consulting, Jacques brings years of leadership experience in the cannabis industry, as well as entertainment, tourism, financial services, and technology industries. His team assists clients around the country navigate the complex and evolving challenges of starting and operating a cannabis business.

His focus is on setting up the corporate strategy and structure, operations and administration of the business, designing and overseeing construction of facilities and systems as well as creating strong relationships with financing partners and major vendors, with a cross-functional approach to innovation and performance.

Jacques Santucci is a co-founder of Wellness Connection of Maine, the state’s largest group of medical marijuana dispensaries and a leader on the East Coast market, operating four state-licensed dispensaries and one growing and manufacturing facility, with a staff of over 80 employees. He is the founder and CEO of Strimo, a software company focused on empowering the serious cannabis operators to manage business performance.

He is a thought-after speaker on the topics of the impact of 280E, the primary business management basics for the recreational market and the evolution of the New England market. He is an active member of the National Cannabis Industry Association, part of the Facility Design Committee.

Connor Yost, Partner

Connor specializes in cannabis business startups, and has been at the forefront of the emerging legal industry since 2014. With a focus on business operations, marketing and compliance, Connor has been instrumental in the license acquisition and launch of several successful companies nationwide. Connor has, and continues to collaborate with the brightest and most successful business leaders in the industry, allowing him to amass a broad skill set and network of resources. Connor’s clients have found success through his commitment to industry best practices and hands-on project management approach. In addition to his consulting practice, Connor is also a founder of Stage Cannabis, an adult-use retail dispensary in Portland, ME.

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