NY Firm Pledges $5M for Cannabis Research if Awarded License

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A company vying for a medical marijuana license in New York said it will dole out $5 million to academic and research institutions to study cannabis if it wins a state permit.

Fiorello Pharmaceuticals said it will grant $1 million to the Institute of Chemical Biology and Drug Discovery at Stony Brook University and another $1 million to institutions near Albany.

The remaining $3 million will be given to researchers and institutions throughout the state over a five-year period, Fiorello said in a press release. The company also said it will support the Arnold and Marie Schwartz College of Pharmacy of Long Island University in Brooklyn if awarded a license.

Grants would support several studies, including those on how THC and CBD can be used to alleviate pain for conditions outlined in New York’s Compassionate Care Act, the company said.

Companies in the running for New York’s five coveted MMJ licenses have taken numerous steps to make their applications stand out, with some hiring former government officials and others partnering with international firms.

Fiorello teamed up with investment bank CastleOak Securities, a subsidiary of Wall Street heavyweight Cantor Fitzgerald, to secure $7.5 million in initial funding. It has leased 120,000 square feet in Glenville, New York, and has said it will open dispensaries in Syracuse, Rochester, Yonkers and Long Island if it wins a permit.

The state may award licenses as early as this week to five companies to grow cannabis, process it into infused products and set up dispensaries.