“Today’s announcement … has changed the entire playing field in New Jersey,” Cooper Levenson Partner Jill Ojserkis said. “Current law requires the first two of each ATC (alternative treatment center) in a region to be nonprofit. Each region currently has two nonprofits.
“The new RFA permits applicants to be either nonprofit or for-profit. It also specifically permits joint ventures and prohibits existing ATCs from participating. As a result, this announcement will likely result in a change in the landscape with existing marijuana businesses and Big Business vying for a coveted ATC permit.”
And Ojserkis believes all six will likely be for-profits, setting them up for a stronger entry into the recreational market when and if it is legalized in New Jersey.
“Banks have traditionally been reluctant to finance marijuana businesses and New Jersey ATCs have had to rely upon private financing,” she said. “I believe that most, if not all, applicants for the next six centers will be for-profit and, as such, have an easier time attracting capital and private financing.
Read entire article here: http://www.roi-nj.com/2018/07/16/healthcare/n-j-doubling-number-of-medical-marijuana-dispensaries-to-12/
