Scramble at the Pop-up
In June, Roland Conner sat down to compose a letter to the creditors who had financed the construction of his licensed cannabis dispensary in downtown Manhattan. A year and a half after opening, he was under immense strain as monthly loan payments, tax bills, and obligations to his vendors mounted.
Bike Helmet on the Shelf
From the vantage point of licensees waiting to open their businesses, Conner seemed like an example of the opportunities the state could provide. He had a store up and running, after all, and their prospects for opening were on the rise—State Supreme Court Justice Kevin Bryant had lifted the injunction on openings after approving a settlement agreement in the veterans’ lawsuit.
Waiting for an Answer
Back in June, Conner asked the fund for a 90-day grace period to catch up on his debts. "This request is an attempt to find a resolution to a problem that can be fixed if we adhere to the original intent of the program, which is grounded in social equity," he wrote. "Ensuring your success should not come at the expense of our business."
Organizational Challenges
Smacked Village was the second dispensary to open in the state, and the first supported by the New York Social Equity Cannabis Investment Fund, a $200 million initiative to finance 150 dispensaries with a mix of public and private funding. Conner’s store was designed to be a template for the program, and he believed it could also serve as a template to address and rectify issues within the program.
Conclusion
The New York Social Equity Cannabis Investment Fund’s approach has left many licensees struggling to stay afloat. With the state’s decision to prioritize social equity, many were expected to benefit from the program. However, the fund’s deal structure, which includes a 13% interest rate over 10 years, has put many licensees in a precarious position. With the overwhelming financial strain, it’s unclear whether the program will be able to achieve its original intent of providing generational wealth to those who have been harmed by the war on drugs.
FAQs
Q: What is the New York Social Equity Cannabis Investment Fund?
A: The New York Social Equity Cannabis Investment Fund is a $200 million initiative to finance 150 dispensaries with a mix of public and private funding.
Q: What is the deal structure for the fund?
A: The deal structure includes a 13% interest rate over 10 years for the construction of the dispensaries.
Q: How many licensees are struggling to stay afloat?
A: Many licensees are struggling to stay afloat due to the overwhelming financial strain caused by the fund’s deal structure.
Q: What is the purpose of the program?
A: The program aims to provide generational wealth to those who have been harmed by the war on drugs.
