Dispensaries selling cannabis at $450 per ounce; CRC hopes costs drop
TRENTON — With cannabis selling at $450 per ounce at dispensaries, the state Cannabis Regulatory Commission (CRC) is hopeful the price will drop as more facilities open in New Jersey.
During a CRC meeting Oct. 27, Executive Director Jeff Brown said medical cannabis enrollment plateaued in May and June with lower numbers following recreational adult use sales beginning in April. He said a tremendous number of patients continue to be enrolled month over month.
“Looking at the average new patients enrolled per month in 2018 was 2,280; this year we’re still averaging 4,634 new patients enrolling in the medicinal cannabis program every month,” Brown said.
In January, the medicinal cannabis program had 121,592 active patients, which dropped to 118,474 in October. In August, almost 5,000 new patients enrolled, according to Brown.
In January, 56,542 ounces of medical cannabis were dispensed, dropping to 47,323 in September, he said.
Brown said the CRC received complaints from consumers in adult use sales about the price of cannabis. Medicinal cannabis (flower) per ounce increased from $398 in January to $414 in August.
Adult recreational prices are averaging $450 per ounce, which has been consistent since January, Brown said. The price of cannabis has increased but at less than the rate of inflation, he said.
The CRC has received more than 1,300 applications for recreational cannabis businesses. Brown said only 63 applications have not moved to a completeness review. Where problems existed with applications, the CRC sent 1,072 cure letters.
Of the applications, 742 are for retail cannabis businesses.
CRC approved raising the excise fee on recreational cannabis sales to be adjusted to account for the actual price of retail sales of $455 per ounce from $1.10 to $1.52. The rate was originally set in August 2021. The excise fee is used for social equity initiatives such as the Business Action Center for those who wish to start a cannabis business.
Brown said conditional license holders needed more time to find retail space and lockdown municipal approvals. He recommended extending conditional licenses by 45 days to give applicants more time to convert from conditional licensure to annual licensure.
The CRC approved conditional licenses for 296 applicants. He said conditional licenses offer the first opportunity for many to get into the cannabis market.
Brown said the applications were reviewed for priority, whether they were social equity businesses, diversely owned businesses or impact zone businesses. He said applicants received an initial review of qualifications, limitations and review of any financial management agreements.
“A conditional license doesn’t grant you the ability to possess, cultivate, manufacture or dispense cannabis but it does move you forward in our process,” Brown said. “It also gives you an initial indication that you have a solid application that you can build on to convert.”
None of the conditional licenses was awarded to two applicants in West Cape May.
The CRC approved conversion of 10 conditional recreational licenses to annual licenses, of which seven were cultivators, two manufacturers and one retailer.
“This may seem like a small number, but it is the tip of the iceberg and we’re going to keep this moving forward,” Brown said.
The CRC approved eight annual licenses. Those applicants applied for an annual license without first requesting a conditional license.
CRC Chairwoman Dianna Houenou congratulated the first 18 cannabis businesses in the state to receive an annual license.
“It is my hope that all of these businesses get up and running as soon as possible,” she said. “We need these businesses to be operational to help drive down those prices.”
By JACK FICHTER/Sentinel staff