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Competition Rises as Additional Dispensaries Recieve Permits

During a meeting on Tuesday, regulators said consumers purchased $24 million in recreational pot in the first month of the industry’s launch. The meeting approved additional dispensary permits.

On April 21, 12 medical-only dispensaries started selling recreational marijuana. Joining an additional five medical-only dispensaries that will soon be able to sell the product. The new locations will be Garden State Dispensaries in Woodbridge, Union, and Eatontown; The Apothecarium in Lodi; and Ascend in Montclair.

It’s really only a beginning, and I think it shows that there’s a lot of growth left in this market,” said Jeff Brown, executive director of the Cannabis Regulatory Commission. Brown further oversees the state’s marijuana market.

A total of $24 million in sales takes place in the 12 dispensaries with the permits to sell recreational cannabis. It took until two weeks ago to approve the 13th location. Which is lower than the average in other states. In Arizona, which launched its market at 73 facilities, the state reported $32 million in sales in the first full month the market was open. In New Mexico, which launched in April with at least 100 stores, sales reached nearly $40 million.

Meeting on May 24th

New Jersey dispensaries brought in about $5 million each week total. Although It is expected that the number of licenses will increase substantially as more are granted.

The meeting on Tuesday awarded 46 conditional cannabis licenses. 22 for cultivators, 13 for manufacturers, and 11 for recreational retailers. The approval of four more labs to operate follows.

It’s not clear when recreational retailers can begin sales. There are still local regulatory hurdles for owners to clear.

The commission also removed the “medical only” rule for cannabis licenses it awarded in the 2019 application cycle, which means instead of operating at least one year as a medical dispensary, licensees need only to prove they have enough supply for both medical and recreational demand.

Brown said the commission will issue quarterly reports starting next month on the number of licensees who are people of color, women, and veterans. The state’s marijuana law requires those groups to comprise 30% of licensees.

The next meeting of the commission will take place on June 23.