Priority is going to social equity applicants in NJ as well
1 Like
Right right, but NJ’s existing medical operators were the first to be able to open up adult-use retail locations, even before social equity applicants. Whereas in NY, the justice involved retail licenses will be the first to open retail locations, even before NY’s existing medical operators.
1 Like
Social equity licensing is fucking dumb.
2 Likes
in il when it went legal there was no flower. are you in that spot= i shouldve made more contacts waiting in line and getting turned away for no flower people
it’s not fair that these god damn poor people are allowed to get licenses
1 Like
a license means tax. id prefer to pay tax vs be a criminal. Will the govt allow me to pay tax and be legal= not yet.
“Poor people” is certainly not what they’re looking for lol.
1 Like
WTF>??? only profitable business owners who have smoked weed and got in trouble??? Wat about the rest of us who got held back? almost makes me wanna sell weed in front of the dispensary.
2 Likes
The only way to allow poor people to get licenses is to make the barrier to entry low for everyone - I haven’t seen a single REC program that has done this. Caregiver states and Oklahoma are or were the only examples of that. Not to mention most of the recent “social equity” programs are complete jokes - the CT “social equity cultivation license” comes with a $3M license fee lol. For others that have lower costs, you can figure out loopholes within 15 minutes of reading the legislation. I can list the typical ways to get around just about every social equity program if you’d like.
Some of the largest investment funds in the world are entering the industry. If there is an advantageous limited opportunity, there is no limit to what they will do to capitalize on said opportunity.
5 Likes
For sure all the social equity programs with high buy-ins will end up being fronts for silent partners…
1 Like
Let’s hear 'em.
1 Like
Here are a few… keep in mind I do not advocate this, I’m just telling you what I’ve seen in just about every social equity process. When I’m involved in a new state that’s coming online, I tell regulators & politicians about loopholes like these and 99% of them don’t care:
- Operational management agreement. Give a social equity candidate stand-in (many literally only get paid like $10k upfront and 1% real equity, if that) 51% of the license holding company, which will have an agreement to cede complete financial, managerial, and operational control to your wholly-owned management company.
- Create a loan agreement with a nonequity holding co that will have such a high-interest rate that the co won’t be able to pay it back - when they default by design, you take over the co.
- Buy the real estate that the ops will be on with a nonequity holding co or anything else connecting you to the license, and make the lease/rent payments variable on a monthly basis. This allows you to raise the rent to whatever the revs/profits/etc of the company are and milk the company for everything it makes.
- For states that mandate that a license be held by a social equity owner for X number of years, do a convertible debt deal that technically doesn’t give you equity upfront to stay compliant, but gives you complete control of the co 1 day after that time period. You can call back that debt anytime you like, so the co basically has to do whatever you want until that period expires and you take over the co either way.
4 Likes
So kinda like this-
3 Likes
I met some vulture captial cunts whose entire business model was this. They loaned the money for license, real estate, capital equipment, etc. all to collect the licenses for sale when the clients eventually defaulted. They were so proud of themselves they could hardly continue drinking their overpriced bourbon.
3 Likes
Legalization aint all its cracked up to be. Until its fully federally legal and i can open up a smoking lounge. The money isnt in the growing or extracting- its the end game where for example- people have no issues paying 8 per beer at a bar and tip as well.
4 Likes
whats so special about licensing weed? I see lots of burrito places and they have the same standards as any other restaraunt. I think weed should be sold farmers market style. If they want it cheap i can grow more and use a trimming machine instead of my horrible useless wooks.
2 Likes
I can even be lame and use a tractor= but that means i have to borrow money from the bank to buy the tractor= that is their plan, banks get rich, growers get worn out.
Do you know if the “tied houses” rule would mean that a cultivator could not also own a extraction/processing facility, or is it just that they can’t own retail?
Cultivators can get a processor license but are only permitted to process their own material.
4 Likes
The minute you make weed an agricultural product instead of something that requires licensing like gambling alcohol or tobacco it becomes worth the price of tomatoes. States know this and want to keep the price high so they can benefit from the tax dollars. Not ideal for consumers but most states allow you to grow your own if so inclined.
3 Likes