New York Governor Kathy Hochul has announced that Chicago Atlantic Admin is investing up to $150 million in the New York State Cannabis Social Equity Investment Fund.
The development has been described as “an historic milestone in the history of justice and social equity in New York State”.
The fund, which was established to support individuals affected by the unequal enforcement of cannabis prohibition, has now reached its cap of $200 million with the addition of the state’s investment of $50 million.
The Governer’s office has stated the contribution from Chicago Atlantic will enable justice-impacted individuals who have received Conditional Adult Use Cannabis Dispensary (CAURD) licenses from the New York State Office of Cannabis Management and Cannabis Control Board to receive turnkey dispensaries to start their businesses.
The funds will be used to:
- Secure, lease, design, construct and furnish the CAURD dispensaries.
- Issue low interest loans to repay set-up costs associated with the Fund program.
Governor Hochul stated: “New York has always strived to lead the nation in providing opportunities for those who have been unjustly denied privileges and opportunities.
“Today’s announcement reinforces New York’s commitment to building partnerships that benefit New Yorkers and setting right the wrongs of the past. I welcome Chicago Atlantic’s participation in this program and applaud their recognition of the value that New York’s cannabis program will provide to so many.”
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Chicago Atlantic Founding Partner John Mazarakis and Managing Director Peter Sack said: “We are proud to support the Governor’s initiative as well as New York’s CAURD licensees, the Cannabis Social Equity Investment Fund, the Dormitory Authority, the Cannabis Control Board and the Office of Cannabis Management in this transformational initiative.
“Social equity is the cornerstone of New York’s cannabis industry, and here we aim to pair progressive licensing with progressive and innovative capital solutions.
“The success of New York’s social equity initiatives and its CAURD licensees will benefit all industry participants and further support the development of the legal cannabis industry nation-wide.”
DASNY President and CEO Reuben McDaniel stated: “Today is an historic milestone in the history of justice and social equity in New York State. I am proud to partner with Chicago Atlantic, an experienced company that will help fulfill the Governor’s and Legislature’s vision of providing opportunity and hope for individuals hurt by the draconian drug laws of the past.
“Chicago Atlantic’s financial commitment and the partnership we have created, will help open doors for so many who have faced unsurmountable obstacles of accessing capital and economic security.”
The Governor’s office has confirmed that the fund will help those who have a CAURD license meet the costs of establishing adult-use cannabis retail dispensaries, including the identification and leasing of suitable retail locations and design, construction, and fit-out of the spaces.
Cannabis Control Board Chair Tremaine Wright added: “Governor Hochul’s announcement of the $150 million senior secured capital investment is a transformative moment for the New York State Cannabis Social Equity Investment Fund.
“This partnership will fortify the fund, ensuring that we can meet the needs of our licensees and empower them to thrive in New York State’s ever-evolving cannabis industry.”
