TRENTON — The first month of recreational cannabis sales in New Jersey got off the ground, taking in $24 million from 12 licensed dispensaries representing 212,000 transactions.
The state’s Cannabis Regulatory Commission (CRC) approved the first 11 conditional licenses for recreational cannabis retail locations May 24.
CRC Executive Director Jeff Brown said there was opportunity for much growth in the cannabis market. He said long lines were in place at dispensaries during the first week of recreational sales.
“While this $24 million number sounds big, it does underlie the fact that there is a tremendous amount of opportunity still in this market for new businesses to come in and serve this market and be successful,” Brown said.
The CRC began accepting license applications Dec. 15, 2021, for cultivators, manufacturers and testing laboratories and on March 15, 2022, for retailers. Brown said the commission has received more than 1,000 total applications with over half receiving an initial determination and review.
The commission put out a request for applications in 2019 with a requirement of alternative treatment centers (ATC) selling only medical cannabis during their first year of operation. The CRC approved removing the one-year requirement and allowing ATCs, when they meet the commitments in their application and expansion standards, to be permitted to apply to expand into recreational cannabis sales.
The CRC approved a second cultivation location site for Columbia Care and Garden State Dispensary. Columbia Care is located in Vineland. Neither applicant will exceed the state maximum limit of 150,000 square feet of growing space.
Approved applications for 46 conditional licenses included 22 cultivator licenses, 13 manufacturer licenses and 11 retail applications, none of which are in West Cape May or Lower Township, where recreational cannabis sales are permitted.
Four testing laboratories were approved by the CRC: Trichome Analytical LLC, New Jersey Cannalytics LLC, Green Analytics East LLC and Sriven Labs. Three of the labs have been operating under interim standards.
“Equity and safety are core values here at the commission and having adequate testing labs operational and licensed in the state are critical for safely ensuring that the product is tested and found to be free of contaminants,” Brown said. “We want consumers to have faith in this market and certainly having adequate testing coverage is critical to that.”
The CRC certified expansion of three ATCs: Garden State Dispensary, Ascend New Jersey and TerrAscend New Jersey, all of which are in north Jersey. The ATCs must have municipal approval, proof of sufficient cannabis supply to meet medical patient needs after expansion and plans to ensure patient access, social equity and safety.
All told, the CRC has awarded 92 conditional cultivation licenses, 45 conditional manufacturing licenses, 11 conditional retail licenses and four testing lab licenses.
During public comment, Robert Allen, who identified himself as a medical cannabis patient and involved in the cannabis industry with an ancillary business, said special prices for patients are disappearing and they are now paying the same price as recreational users.
“Some of the prices have actually increased, which is also very troubling,” he said.
By JACK FICHTER/Sentinel staff
