Firm Partners and Cannabis Law specialists Charles J. Messina, Esq. and Jennifer Roselle, Esq. were recently interviewed for a NY Cannabis Insider article entitled, "Experts Advise Caution Investing in New York Cannabis".
The article begins, "As New York establishes its legal marijuana marketplace, investors continue to seek opportunities to back cannabis businesses and earn a return on their dollar.
Experts say such opportunities exist, but recommend a cautious approach amid regulatory uncertainty, the state’s focus on social equity, and the staying power of its legacy cannabis market."
Ms. Roselle noted New York’s social equity emphasis. “There is a clear dedication in New York that social justice applicants are to be first in line."
But, in performing their due diligence on potential investment targets, investors will still have their collateral requirements, she added. Will new social equity entrepreneurs be able to meet such requirements?
“Who’s going to give over that kind of money without assurances?” she observed. “This is a great opportunity to make money, but it’s about planning how you get there.”
Roselle advises investors in the New York cannabis market to “proceed with caution” since many regulations are still in their comment periods and not yet finalized.
“Enter into it with the understanding of the emphasis on social justice,” she said. “This will guide decisions of investors who want to participate in the market.”
Mr. Messina noted that the MRTA restricts partnerships with multiple business operators across the various sectors of legal cannabis.
“Proceed with caution and have an understanding of existing regulations,” he advised. “You can’t have a direct or indirect interest in more than one business, but there are options.”
Among these options, Messina said, are ancillary businesses like real estate and delivery apps. Above all, he urges potential investors to do their homework.
“Don’t disqualify yourself by who you partner with"..."Make sure you have local support.”
For those with a NY Cannabis Insider subscription, please click here to access the full article.