Chemistree Technology Inc (CSE:CHM) (OTCMKTS:CHMJF) announced Monday that its partner Applied Cannabis Sciences of New Jersey is planning to submit applications for licenses under the state’s new marijuana plan.
Last Monday New Jersey announced a plan to offer up to 54 separate dispensary licenses, 30 processing permits and 24 cultivation licenses, including three tiers of grower permits. Applications will be available July 1.
Applied Cannabis Sciences (ACS) will apply for cultivation, manufacturing and dispensary licenses in a bid to create a vertically integrated model for its business, Chemistree said in a statement.
READ: Chemistree expands CBD portfolio with strategic investment into physician-led cannabis company
Vancouver-based Chemistree partnered with ACS in April 2019 to assist the New Jersey company’s qualification process as a potential applicant. For Chemistree, the partnership with ACS provides the cannabis investment company with an eastern US presence in a state home to over nine million people.
"When we entered discussions to participate with ACS, we were particularly impressed by the team of industry experts they had assembled, and their deep local knowledge of the dynamic, developing New Jersey market for medical cannabis,” said Karl Kottmeier, Chemistree’s president.
“The fact that the state authorities have recognized the need to expand the total number of licenses and speed-up their licensing process is certain to be welcome news to a large and under-served population and a huge opportunity for ACS."
Under current state law, only medical marijuana is legal in New Jersey. Headwinds coming from the Garden State, however, seem to indicate that full legalization of recreational cannabis is not far behind. A voter referendum on adult use legislation is expected in 2020, and Governor Phil Murphy has been outspoken in his support for recreational cannabis use.
During last summer’s request for applications, where six licences were on offer, ACS placed in the top-20 applicants. As a result, Chemistree plans to make an early investment into ACS, acquiring 10% of the business with an option for a larger stake once it has obtained the licences.
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