Chemistree Technology Inc (CSE:CHM) (OTCMKTS:CHMJF) announced Monday that through a wholly owned US subsidiary, it has finalized its investment in Applied Cannabis Sciences (ACS) of New Jersey.
The completion of the investment comes as ACS, Chemistree's new partner, gears up to submit applications for licenses under the state’s new marijuana plan.
New Jersey recently announced a plan to offer up to 24 new permits, consisting of 15 dispensary permits, five cultivation permits, and four vertically integrated permits. All applications have to be submitted by August 22.
READ: New Jersey's expansion of medical marijuana program an opportunity for Chemistree's partner ACS
ACS placed in the top 20 applicants in the last round, narrowly missed out on receiving a cannabis license at that time.
"Completing this investment with ACS and being on the ground floor towards expanding New Jersey's medical marijuana program marks a significant step forward in our company's East Coast expansion," said Karl Kottmeier, president at Chemistree Technology. "We expect, along with ACS' leading cannabis experts and track record, that we will be able to secure this highly coveted and valuable State license."
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 which is home to over nine million people.
“The goals of both entities are keenly aligned, with the objectives of serving both the patients and communities in which we operate being our top priority,” said Chemistree board director Nico Escondido, who is also a founding member of 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.
The application, if successful, will provide ACS with a fully integrated cultivation, manufacturing, processing and retail sales license in New Jersey.
Currently, there are only 12 facilities servicing the 49,000 patients enrolled in New Jersey’s medicinal cannabis program. The expansion of New Jersey's medical program has set a goal of increasing the registered patient count to over 200,000.
Contact Uttara Choudhury at [email protected]