Marijuana Business Factbook 2019

192 Marijuana Business Factbook 2019 Chapter 3 | Financial & Operational Data: Wholesale Cultivators © Copyright 2020, Marijuana Business Daily , a division of Anne Holland Ventures Inc. You may NOT copy this Factbook, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call (720) 213-5992, ext. 1. CHART 3.10: Percentage Of Operational Marijuana Markets That Allow Wholesale Cultivation & Potential Business Prospects For Growers In several markets where wholesale cultivation is allowed, significant changes have either already happened or might in the near future ― all of which will benefit growers in each state. Changes that may expand opportunity to medical cultivators include: • Illinois: The state made history in June by becoming the first to legalize recreational marijuana retail sales via a legislature. Existing medical marijuana businesses will have priority for recreational licenses and sales, while the state will issue stand-alone licenses for cultivators in 2020 and 2021. Marijuana Business Daily estimates annual recreational sales in Illinois could reach $2.5 billion when the market matures. The impact to existing cultivators will depend on how many new cultivation licenses the state issues. Patient counts are expected to increase significantly ― possibly even doubling ― now that the state has launched an opioid-alternative program. Initiated in January 2019, the program allows patients prescribed opioids to instead obtain a 90-day, renewable medical cannabis card. This program could be a boon to existing license holders, provided they are able to scale up production. • New Jersey: In early July, Gov. Phil Murphy signed a medical marijuana expansion bill into law that includes additional permits for up to five stand-alone cultivators on top of the six existing vertically integrated businesses. The application process for the new permits will be open through late August, and applicants may apply for up to three permits. New Jersey regulators will decide how many licenses to issue and in which regions, based on patient needs. One cultivation license will be awarded to a cultivator with 5,000 square feet or less of canopy space ― meaning opportunity exists for a small-scale operator to tap into this growing market.