Even though New York hasn’t even begun issuing business licenses yet for medical marijuana companies, a plan is already underway for a $10 million cultivation operation in a farming community between the Big Apple and Albany.
A company called Valley Agriceuticals, comprised of several health care and cannabis industry insiders, is trying to position itself to win one of just five business licenses that will be awarded at some point by the state health department, according to The Journal News. Those five licenses will allow each company to operate up to four dispensaries, for a total of 20 in the state.
Valley Agriceuticals has also already produced an estimate of more than $1 million in tax revenue and fees that will be paid directly to the local and state governments, according to The Journal News. That’s a nod to the growing trend of licenses being handed to companies that are most likely to pay dividends to the community.
All of this news highlights just how competitive New York’s licensing process will likely be, even though final regulations for the industry were just released last week. But last year, The New York Times estimated that it could cost upwards of $20 million to start a cannabis dispensary company in the state.
Regardless, there will likely be plenty of contenders because of the potential size of the New York market.