Former Medford, New Jersey mayor and former New Jersey General Assemblyman Scott Rudder is opening a dispensary in Riverside in his home state. Riverside, a suburb in the greater Philadelphia-Camden area, is a prime location for growth in the cannabis sector.

Rudder, who is Republican, founded the New Jersey CannaBusiness Association in 2016, a leading cannabis trade industry association. He’s also a veteran and helped organize and was a top consultant to statewide campaigns to legalize adult-use cannabis in New Jersey in 2020, and also that year, NJ.com named Rudder the “Mayor of Cannabis.” 

Township Green will hold its grand opening today with local officials and dignitaries, including State Senator Troy Singleton, who will take part in the ribbon-cutting ceremony for the state’s most recent cannabis dispensary to open. 

“Township Green exemplifies what we hoped to achieve by legalizing cannabis in New Jersey,” said Rudder. “We’re focused not just on providing a great product but on building a sense of community and bringing commerce to downtown Riverside. Please join us on March 25 as we start this new and exciting chapter for the community.”

The reasoning behind the opening of this retail location is to help revitalize and bring more foot traffic to Riverside’s downtown business district. It will also provide about 20 jobs, with the majority of them being given to local residents, some of whom can walk to work. 

Last year, Rudder spoke to Insider NJ and said that about 70% of New Jersey towns have opted out of allowing cannabis businesses in their communities. However, he added, “that makes those remaining 30% very competitive.” He pushed to expand the state’s cannabis sector forward. “Although more and more people are picking up cannabis and putting down alcohol,” Rudder continued, “a lot of people still feel very closeted about it, which surprises me. … Some towns are a little slow getting to the mark. But some towns are also looking to opt back in [to having cannabis businesses], due to the tax benefits and job creation. I’m a former mayor, father of three. I understand those concerns.”

With his new dispensary, he hopes to continue to take part in the growth of the state’s cannabis sector. It involves people who are respected in the community. Township Green’s Chief of Security, for instance, is the retired Riverside Chief of Police and several of the security personnel for the dispensary are local firefighters.

Township Green’s grand opening will take place today, March 25 at 10:30 a.m. at 15 Scott Street, Riverside, New Jersey.

Progress in the New Jersey Cannabis Market

Meanwhile, the state is making strides in cannabis reform, such as ironing out the rules for consumption lounges.

The New Jersey Cannabis Regulatory Commission (CRC), responsible for the rules and regulations of cannabis in the state, met on Jan. 17 and unanimously approved regulations for consumption lounges in the state.

According to a CRC press release, the rules need to be approved by the New Jersey Office of Administrative Law, but after that occurs, dispensary operators need to seek municipal approval in order to be endorsed by the CRC to have a consumption lounge. Endorsements last for one year and must be renewed every year.

CRC Executive Director Jeff Brown said in a statement that consumption lounges would contribute to the success of New Jersey’s cannabis industry. “New Jersey’s cannabis industry is well on its way to being a billion-dollar industry, and consumption areas will likely bolster that—fostering a communal experience for those 21 and older around cannabis in a regulated and secure space,” Brown said.

The primary rules state that a consumption area can’t be a standalone business, but that it must be attached to a retail store. If a dispensary owns multiple dispensaries, they are only permitted to have one consumption space.

In addition, as medical sales and enrollment gradually decline amid adult-use sales, the CRC is introducing digital medical cannabis cards with no registration and renewal fees shortly after reducing fees for its physical medical cards.

According to the commission, the new digital cards will begin rolling out in a few weeks and were introduced to prioritize patient accessibility and convenience. The digital cards can be presented on a mobile device, eliminating the risk of losing or damaging a physical card while also enhancing accessibility, the commission said.

Those who would still like a physical medical card are still in for a bargain, as the CRC also recently reduced its physical registration fees to $10—they will not be required to pay again until renewal two years later, which is also a $10 fee.

The opening of Township Green add to New Jersey’s growing industry, with plans to prioritize local community members.

As New Jersey approaches the two-year anniversary of its recreational cannabis market launch this April and adult-use revenue continues to rise, regulators recently announced a new incentive for residents to secure their medical cards.

The New Jersey Cannabis Regulatory Commission (NJ-CRC) announced last week that signup and renewal for its new digital medical cards will be free. According to the commission, the new digital cards will begin rolling out in a few weeks and were introduced to prioritize patient accessibility and convenience.

The digital cards can be presented on a mobile device, eliminating the risk of losing or damaging a physical card while also enhancing accessibility, the commission says.

Changes to New Jersey’s Medical Cannabis Program

Those who would still like a physical medical card are still in for a bargain, as the NJ-CRC also recently reduced its physical registration fees to $10 — they will not be required to pay again until renewal two years later, which is also a $10 fee.

The entire announcement touches on a number of other topics related to New Jersey medical cannabis, with the last header hitting on “Satisfaction Among Program Participants.” It notes a recent survey, conducted by the commission, that found less than 9% of 1,000 surveyed patients said they were unsatisfied with the service they received after contacting Patient Services at the NJ-CRC.

“While many respondents shared concerns about the health care provider fees, product prices, and product availability, more than half said they participate in the program to enjoy the lower price they get from regular patient discounts and not having to pay state taxes, and to have access to the strains and products available only to patients,” the commission states in the announcement.

It also encourages readers to look out for dates for medical cannabis program registration clinics, which are set to be held across New Jersey in the coming months.

New Jersey’s Declining Medical Cannabis Market

Looking at New Jersey cannabis sales trends, the reduction in registration and renewal fees may not come as a shock. New York similarly waived its $50 medical cannabis fee in 2022, the year after it legalized recreational cannabis.

And as New Jersey’s recreational cannabis market has continued to blossom, boosting overall sales numbers, its medical sales are gradually declining.

In April 2022, when recreational sales launched in New Jersey, there were 128,548 total patients in the state. That number in January 2024 was only 88,670, approximately a 31% decrease in less than two years.

While medical sales numbers for 2023 Q4 are not yet available, looking at year-over-year comparisons of Q3 also provides some context for just how stark this change is. Medical sales for 2022 Q3 came to about $61.1 million, while 2023 Q3 was less than half that amount at approximately $29.2 million. 

Conversely, recreational sales year-over-year for the same periods increased from approximately $177.7 million to $206.1 million, for 2022 and 2023’s third quarters respectively.

Potential Incentive for Patient Enrollment

While the NJ-CRC did not make any explicit mentions of sales trends and the decline of medical cannabis sales numbers, it’s likely that these moves were made in part to encourage more residents to take advantage of the state’s medical cannabis program.

As regions introduce their own legal recreational cannabis markets, allowing access for anyone over 21 years old with a valid ID, consumers in legal cannabis states often wonder about the need for a medical card. 

One of the main perks for many is avoiding the taxes levied on recreational products, as mentioned by the commission in their announcement. 

In New Jersey, recreational cannabis products are subject to the standard 6.625% sales tax, along with the Social Equity Excise Fee which changes based on the average price of cannabis — as of Jan. 1, 2024, the fee was updated to $1.24 per ounce. Municipalities can also charge a 2% transfer fee on cannabis sales that occur within their borders.

These taxes may not seem extreme given the additional taxes in some other states — Washington State has the highest cannabis taxes in the continental U.S. with its 37% excise tax, for example.

While the tax rates may not be the highest, New Jersey infamously has some of the most expensive recreational cannabis in the country. Aside from the tax relief, medical programs tend to have cheaper pricing along with specialized products, higher dosage options and more. 

Whether these efforts will actually reverse New Jersey’s medical cannabis market trends remains to be seen; the decline in medical sales and program enrollment numbers tends to be a recurring theme in medical-only states that legalize recreational cannabis.

The New Jersey Cannabis Regulatory Commission (CRC), which manages the rules and regulations of cannabis in the state, met on Jan. 17 and unanimously approved regulations for consumption lounges.

According to a CRC press release, the rules would need to be approved by the New Jersey Office of Administrative Law, but after that occurs, dispensary operators would need to seek municipal approval in order to be endorsed by the CRC to have a consumption lounge (endorsements last for one year and must be renewed every year).

CRC executive director Jeff Brown said in a statement that consumption lounges would contribute to the success of New Jersey’s cannabis industry. “New Jersey’s cannabis industry is well on its way to being a billion-dollar industry, and consumption areas will likely bolster that—fostering a communal experience for those 21 and older around cannabis in a regulated and secure space,” Brown said.

The primary rules state that a consumption area can’t be a standalone business, but that it must be attached to a retail store. If a dispensary owns multiple dispensaries, they are only permitted to have one consumption space.

Consumption lounges would be required to have ventilation that is “robust enough to ensure proper ventilation and prevent smoke or vapors from affecting neighbors.” On-site sale of food, alcohol, tobacco, and nicotine products are not allowed, but customers can bring in their own food or non-alcoholic beverages. In addition to this, medical cannabis patients would be allowed to bring their own medical cannabis or cannabis items, “so long as the on-premises consumption of that cannabis is authorized.”

A consumption lounge would cost $5,000 for the initial fees, followed by an annual fee (with microbusiness only paying $1,000).

The CRC stated that potential consumption lounges would be allowed to make their own rules about operation hours, consumption area fees, medical cannabis patient priority access, or initiating paid events. However, they would also have to adhere to rules established by their local municipality as well, “including but not limited to restricting the number of consumption areas allowed in their town, business signage, and communication with municipal emergency services.”

CRC chairperson Dianna Houenou also provided a statement, expressing the importance of allowing a safe place for people to consume. Having space to consume cannabis is not just about recreation. It is also about providing equitable access and offering people a safe place to consume legal cannabis products,” said Houeno. “This move holds particular significance for communities that are limited in where they can enjoy cannabis—most notably, renters who cannot consume cannabis at home, unlike homeowners who enjoy greater freedom.”

Houenou added that “a couple more steps need to happen” before the CRC officially begins to accept lounge applications.

The New Jersey Monitor spoke with Alyza Brevard-Rodriguez, owner of a two-story building that will open soon in Jersey City. The first floor will be her dispensary, called The Other Side Dispensary, and the second floor will be reserved for smoke-and-yoga events or comedy nights, ideally if/when she is endorsed by the CRC. “I think it’s really critical for us to create those safe spaces to consume,” said Brevard-Rodriguez. “But the other part of it is connecting with people … I think it’s really important for the culture of cannabis.”

Legal cannabis sales took effect in New Jersey in April 2022. The CRC’s proposal for consumption lounge regulations was approved in December 2022, which was followed by a 60-day public comment period.

Scott Rudder, New Jersey Cannabusiness Association president, also said that the topic of consumption lounges was among some of the first conversations he had with New Jersey legislators. “That’s how the conversation started, and there’s been an evolution to where we are today,” Rudder said. “Patients will have a nice place to consume their medication, but now consumers in general will have the opportunity to go and unwind, talk to friends, maybe have lunch or watch musicians. We’re going to start small and see how things go.”

Rudder’s expectation is that a few consumption owners will open, but many more will choose to wait and see how things play out before investing. “I think you’re going to see some consumption lounges open here and there, and people will wait and see what they’re doing,” Rudder added. “Are they making any money? Are they free of safety issues or are other concerns being realized? People are going to look at this smartly.”

Rudder, who owns a dispensary that has not yet opened in the city of Riverside, and Brevard-Rodriguez agree on one thing in particular—they want their businesses to turn a profit before embarking on consumption lounge expansions.

Nevada is one of the states that is farthest along in consumption lounge progress, with numerous licenses approved. Many of these lounges are still either building their lounges or fulfilling strict rules for proper ventilation or other important requirements. Planet 13 in Las Vegas, Nevada released a press release in November 2023 touting an April 20, 2024 release date.

While the state legislature legalized cannabis consumption lounges back in 2021, Clark County commissioner Tick Segerbloom told 8NewsNow that 2024 is going to be “the” year. “It really is going to be a big year. And a big part of our economy,” Segerbloom continued.

Nevada Cannabis Association executive director Layke Martin added that this is new territory for business owners, and they’re learning as they go. “Remember no one has really done these before. Certainly not here,” Martin said. “It’s ventilation, it’s security, it’s safe consumption and driving, it’s training. Those are the types of regulations that we’re talking about.”

Governors across America are tired of waiting for President Joe Biden to fulfill his goal to swiftly determine if the country should reschedule cannabis at the federal level—leading six of them to urge the president in a letter to do something after months of inaction.

Colorado Gov. Jared Polis, Illinois Gov. J.B. Pritzker, Louisiana Gov. John Bel Edwards, Maryland Gov. Wes Moore, New York Gov. Kathy Hochul, and New Jersey Gov. Phil Murphy urged the president to take action in a letter dated Dec. 5, given that it’s been 10 years since the first states legalized adult-use pot (starting with Colorado and Washington).

Polis led the effort to send the Biden administration the letter. The Governors applauded the president for reconsidering the classification of cannabis and encouraged the federal government to reschedule cannabis. Polis expressed the Governors’ hope that the Drug Enforcement Administration (DEA) will reschedule cannabis from Schedule I to Schedule III this year. 

This is What Americans Want

Americans overwhelmingly support legal cannabis, Pew Research found. Nearly 88% of Americans said they are in favor of legalization for medical and adult-use cannabis. Doing so, they said, would rectify cannabis’s outdated classification, which is long overdue and puts small businesses and public safety at risk. 

“This decision by a leading federal health agency comes on the heels of 38 states creating their own state markets and complementary regulatory systems. In some cases, these state regimes have thrived for more than a decade, and this recommendation by FDA is a real testament to their success. It’s a signal that FDA and the Department of Health and Human Services [HHS] have faith in state regulators and the regulations that they have promulgated to keep citizens safe,” the Governors wrote.

The DEA only adheres to its own analysis, however, and is not necessarily bound by the HHS’s recommendation, Reuters reported, though many other experts predicted the DEA would act on their recommendation. Only a major administrative action or an act of Congress could create major change towards ending the prohibition of cannabis.

They acknowledged the enormous impact federal law has upon cannabis businesses, forcing them to do business in cash, and also putting them at risk for violent crime, which High Times has documented again and again.

“Economically, rescheduling to Schedule III will alleviate restrictions of Section 280E of the

Internal Revenue Code, allowing cannabis-related businesses to take ordinary business

deductions—just like every other American business,” the letter reads. “Economists estimate that this will save$1.8 billion per year by shifting cannabis companies to a standard federal corporate rate of 21% versus the up to 80% effective tax rate they face now.”

A Cash-Only Business

Rescheduling pot would allow cannabis-related businesses to take ordinary tax deductions, like any other business, and it would not only alleviate financial and safety concerns for businesses but allow the cannabis industry to play a full role in the American business landscape. 

Regulated cannabis that undergoes lab-testing, etc. is safer than alternatives and has been linked to reduced rates of opioid abuse, opioid-related hospitalizations, traffic fatalities, drug treatment admissions, and overdose deaths. 

“There is, and will continue to be, a significant consumer demand for cannabis. That fact will not change regardless of the public policy choices that we make.” The Governors wrote So, it seems obvious and sensible to us to make cannabis as safe as it can be for adult consumers while simultaneously protecting our children. The state-regulated marketplace does just that. If the state-legal marketplace doesn’t survive, then we will see unsafe products on every street corner,” the Governors continued.

Stocks soared as Biden released an announcement on Oct. 6, 2022, urging the of Health and Human Services and the Attorney General to consider reclassifying pot, which was the first indicator that it could actually happen.

“I am asking the Secretary of Health and Human Services and the Attorney General to initiate the administrative process to review expeditiously how marijuana is scheduled under federal law.  Federal law currently classifies marijuana in Schedule I of the Controlled Substances Act, the classification meant for the most dangerous substances.  This is the same schedule as for heroin and LSD, and even higher than the classification of fentanyl and methamphetamine – the drugs that are driving our overdose epidemic. 

Several months ago, Polis sent a letter to Biden on Sept. 5 regarding the U.S. Department of Health and Human Services’ (HHS) recommendation for the Drug Enforcement Administration (DEA) to reschedule cannabis from a Schedule I substance to a Schedule III substance.

“We are pleased to hear that you have recently received Health and Human Services’s (HHS) recommendation to move cannabis to Schedule III,” Polis wrote in his letter. “It’s about time.”

The New Jersey Economic Development Authority (NJEDA), an agency responsible for providing financial assistance to New Jersey-based businesses, recently announced that it will now be accepting applications for Phase II of its cannabis equity seed grant program. This phase includes a total of $8 million that will be split up between 48 applicants ($150,000 each).

The entirety of the Cannabis Seed Equity Grant Program offers a total of $20 million to applicants with either a conditional or annual cannabis license, with the goal of providing funds for start up and operation expenses during a business’s first three years.

The first phase of the program allocated only 40% of funds for social equity applicants, whereas Phase II is utilizing 100% of reserved funding for social equity purposes. The application window for Phase II opened on Nov. 30 at 10am, and approved applicants will receive $150,000 and “no-cost technical assistance,” which includes an eight-week program for grant recipients to benefit from in the form of webinars. “The technical assistance program will provide training on converting a conditional license to an annual license, building a cannabis business team, financial management, securing investors, supply chain management, and more,” NJEDA stated.

According to NJEDA Chief Executive Officer Tim Sullivan, building out this program will bolster the state’s cannabis industry. “Under Governor Murphy’s leadership, New Jersey is on the forefront of creating a stronger and fairer cannabis market, especially for communities historically harmed by the unjust War on Drugs,” said Sullivan. “The Seed Equity Grant, which is specifically designed for social equity applicants, will help create an equitable, inclusive marketplace that will create jobs and strengthen communities, all while ensuring our entrepreneurs are able to reap the industry’s economic benefits and have access to the resources needed to succeed.”

The Cannabis Regulatory Commission (CRC) also signed off on the effort to prioritize social equity. “We are excited to see grant funding being used to help social equity applicants realize their entrepreneurship dreams. Beyond the skills and business acumen it takes to be an entrepreneur in any industry, starting a cannabis business faces additional challenges—including limited access to traditional means of business funding,” said CRC chair Diana Houenou. 

Phase I applicants were not required to have secured real estate or municipal approval for their cannabis business. For Phase II grant applications, applicants must meet all CRC criteria as well as have already obtained a conditional license.

According to the NJEDA website, the most recent application window was so popular that by Dec. 1, new applicants were placed on a waitlist. “Based on significant interest in the Cannabis Equity—Seed Equity Grant, the NJEDA has already received applications up to or exceeding the amount of funding available under this program,” the agency posted on its website. “All submitted applications that are received at this time will be placed on a waitlist and will be reviewed if the NJEDA can determine there is funding available to support the application.”

Recently in October, NJEDA announced $12 million in funds for 48 cannabis business applicants ($250,000 each), describing the round as one of the largest social equity grants of its kind in the U.S. Gov. Phil Murphy spoke about how essential it is to invest in social equity applicants. “As the cannabis industry continues to reach new heights in New Jersey, it is important that we build on our efforts to support the businesses seeking to enter and grow within this emerging market. The Cannabis Equity Grant Program allows us to simultaneously expand the pool of cannabis businesses in our state while also focusing on those communities most impacted by the unethical War on Drugs,” said Murphy. “As we work to create a stronger, fairer, and more equitable cannabis market, our Administration will continue to increase access and opportunity to the small businesses entering the industry.”

Also in October, Murphy and Attorney General Matthew J. Platkin announced that $5.5 million in cannabis tax funds would be put toward the New Jersey Hospital-Based Intervention Program. The money comes from the Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Fund, with a goal of support victims of crime through crisis intervention and victim compensation. The $5.5 million will be granted to eligible applicants starting in 2024.

A poll conducted earlier this year in May by Stockton University showed the changing attitudes of cannabis in New Jersey. Out of more than 660 participants, one-third of them said that they’ve used cannabis since it was legalized. Forty-four percent said that they used cannabis for recreational purposes, while 39% said it was for both medical and recreational purposes, and only 13% said they tried cannabis for medical consumption only.

The poll showed that 69% of consumers purchased their cannabis products through a legal dispensary, and 86% of them said that they were “satisfied” or “very satisfied” with the experience. However, with the state having some of the highest cannabis prices in the country, only 7% of participants said that they approve of current cannabis prices.

If employees who drive buses, operate forklifts, and work with hazardous equipment aren’t allowed to test positive for pot should the police? After New Jersey’s Attorney General said that law enforcement officers can consume pot off-duty last year, a lawsuit aims to block officers on police forces from consuming cannabis, even off the clock.

The New Jersey Monitor reports that Jersey City Public Safety Director James Shea, filed an 18-page complaint on Oct. 16, arguing that because federal law prohibits anyone who uses a controlled substance including cannabis from possessing a firearm, Jersey City cannot employ police officers who consume adult-use cannabis. Shea was joined in his announcement with Mayor Steven Fulop and Jersey City Police Department officials.

The State of New Jersey, Matthew Platkin as Attorney General of the state of New Jersey, The New Jersey Civil Service Commission, Norhan Mansour, Omar Polanco, Mackenzie Reilly, Montavious Patten, and Richie Lopez are listed as the plaintiffs. 

The lawsuit argues that federal law prohibits police officers from carrying ammunition, thus making them ineligible to be police officers.

“The Federal Gun Control Act […] prohibits regular users of controlled dangerous substances, including marijuana/cannabis, from possessing or receiving firearms and ammunition,” the lawsuit reads. 

“Police officers in New Jersey are required to possess and receive firearms in order to fulfill their duties as law enforcement officers. New Jersey legalized the regulated use of recreational marijuana/cannabis in New Jersey through passage of the Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (CREAMM Act). In doing so, New Jersey failed to address the impact of the federal firearm laws on the use of regulated marijuana/cannabis in New Jersey for persons who are required to possess and/or receive firearms or ammunitions as part of the job duties, including police officers in Jersey City.” 

The lawsuit clarified where specifically the law would need to be applied.

“This action seeks a declaration pursuant to 28 U.S.C. § 2201, that the CREAMM Act and specifically N.J.S.A. 24:6I-52(a)(1) is preempted as it applies to adverse employment action to any individual who is an unlawful user of any controlled substance, including marijuana/cannabis, where such person is required to possess and/or receive a firearm or ammunition as part of his or her job duties.” 

Shea defended his reasoning in challenging police officers’ eligibility based on testing positive for cannabis.

“Every citizen in the state of New Jersey has the right to use marijuana,” Shea told the media at Jersey City’s public safety headquarters. ”If one of our officers wants to do that, they could smoke as much as they want—they can no longer perform the duties of a police officer, and we will have to terminate them if we become aware.”

How This All Started

In April 2022, Attorney General Matt Platkin told law enforcement officials in New Jersey that state law requires them to allow officers to consume cannabis off-duty. This law was recently challenged in Jersey City: The state Civil Service Commission concluded that Jersey City must rehire a police officer who was fired after she tested positive for cannabis. At least three other officers fired for the same reason have also challenged their terminations, the New Jersey Monitor reports.

The CREAMM Act was passed on December 27, 2020. The CREAMM Act authorizes the state’s Cannabis Regulatory Commission (CRC) to expand the existing Medicinal Cannabis Program, and develop, regulate, and enforce adult-use rules and activities.

Shea added at the press conference that the CRC is “refusing to acknowledge the conflict between the federal law and the state law.” The lawsuit highlights the supremacy clause of the U.S. Constitution, banning states from overriding federal statutes. “We all agree that they smoked, they utilized marijuana, cannabis, or THC. We all agree that they would need to carry a firearm to be police officers,” he said. “So it should be as simple as a judge clarifying the supremacy clause.”

Shea said the officers who were fired were all offered jobs in his department that did not involve guns, but the city refused to give them their old jobs back. He added that they were fired not because they used cannabis but because they can no longer carry a firearm, thus becoming ineligible to be police officers.

The commission argued that there is no basis in the state’s adult-use cannabis law, the CREAMM Act, which allows employers to fire someone who uses cannabis outside of the scope of work on the clock, meaning Jersey City can’t fire officers who simply test positive for cannabis because they could have smoked weeks ago.

The decision aligns with the Bureau of Alcohol, Tobacco, Firearms and Explosives, which said last March that people who consume cannabis are ineligible to possess firearms or ammunition under the federal Gun Control Act of 1968.

• Signed a definitive agreement with an option to acquire 70% of ABCO Garden State, LLC (“ABCO”) in two tranches, pending regulatory approval
• ABCO has a conditional cultivation license with the New Jersey Cannabis Regulatory Commission and is expected to receive its annual license in October
• ABCO has all local zoning and planning approvals and has secured a long-term lease of a ~50,000 square foot facility ready to build with sufficient power supply

MEDFORD, Ore., Oct. 4, 2023 /CNW/ – Grown Rogue International Inc. (“Grown Rogue” or the “Company”) (CSE: GRIN) (OTC: GRUSF), a craft cannabis company operating in Oregon and Michigan, and in Minnesota and Maryland through an advisory agreement with Goodness Growth Holdings, Inc., announces that it has signed a definitive agreement with an option to acquire 70% of ABCO Garden State, LLC (“ABCO”), pending regulatory approval from the New Jersey Cannabis Regulatory Commission (“CRC”). ABCO has a conditional cultivation and manufacturing license already issued by the CRC and anticipates receiving its annual cultivation license shortly.

The key deal terms are as follows:

• Grown Rogue has an option to acquire 70% of ABCO in two tranches, 49% in the first tranche (“Tranche 1”) and 21% in the second (“Tranche 2”), pending regulatory approval.
• Grown Rogue anticipates exercising its Tranche 1 option upon receiving licensing approval from the CRC with its Tranche 2 option, pending regulatory approval, 2 years after the commencement of operations.  Grown Rogue has also secured the right to purchase the remaining 30% of ABCO.
• Grown Rogue is paying US$10,000 per option.  At the exercise of its Tranche 1 option, Grown Rogue has the option to pay US$1,390,000 (“Tranche 1 Price”) at closing or execute a 12.5% interest only note for 2 years at which time the Tranche 1 Price is due and payable.  At the exercise of its Tranche 2 option, Grown Rogue will pay US$590,000 (“Tranche 2 Price”) at closing.
• Except for $100,000 going to the current members of ABCO, the remainder of the Tranche 1 Price and Tranche 2 Price will be used to fund tenant improvements or for general working capital at the ~50,000 square foot facility (“Facility”) leased by ABCO.  In addition, pending regulatory approval and construction needs, Grown Rogue has agreed to loan up to US$4,000,000 for improvements at the Facility (“Drawdown Loan”).
• The exercise of the Tranche 1 and Tranche 2 options and the Drawdown Loan are all subject to regulatory approval.

“We are extremely excited to announce our partnership with ABCO, accelerating our ability to bring the quality and value of Grown Rogue products to the consumers in New Jersey,” said Obie Strickler, CEO of Grown Rogue. “Over the past two years we have analyzed many expansion opportunities, and none had the risk and reward profile that New Jersey, and specifically this Facility, offers. To put this investment in perspective, Grown Rogue invested US$4,000,000 in capital expenditures in a similar size facility in Michigan and that asset is currently on a run rate of generating nearly $4,000,000 in after tax operating cash flow. To add, the current average selling price of flower in New Jersey is nearly triple the average price of Michigan. We can’t wait to bring Grown Rogue’s Oregon quality flower and top-notch genetics to New Jersey. We believe we can delight NJ cannabis consumers and reward shareholders due to our battle-tested experience competing in Oregon as the #1 flower producer, and in Michigan as a top 5 indoor flower wholesaler.  All expenditures in New Jersey are expected to be done with cash on hand and cash generated from current operations,” continued Mr. Strickler.

The retrofit of the Facility is anticipated to start in October 2023, and will likely be constructed in two phases. Construction of Phase 1 is estimated to be completed in Q2 2024 with the first harvest completed in Q3 2024 and will include the construction of ~10,000 square feet of flowering bench space and is estimated to yield ~600 pounds of whole flower per month. The remaining construction is estimated to be completed by the end of 2024 with the first harvest completed in Q1 2025, consisting of total flowering bench space of ~17,000 square feet and ~1,000 pounds of whole flower per month.

The New Jersey cannabis market reported more than US$191,000,000 in sales in the three months ended June 30, 2023. According to MJBizDaily, this market is expected to grow to US$2,400,000,000 by 2026, representing a 40% compound annual growth rate.

About Grown Rogue

Grown Rogue International (CSE: GRIN | OTC: GRUSF) is a craft cannabis company operating in Oregon and Michigan, and in Minnesota and Maryland through an advisory agreement with Goodness Growth Holdings, Inc., is focused on delighting customers with premium flower and flower-derived products at fair prices. Our roots are in Southern Oregon where we have demonstrated our capabilities in the highly competitive and discerning Oregon market and, more recently, we successfully expanded our platform to Michigan. We combine our passion for product and value with a disciplined approach to growth, prioritizing profitability and return on capital. Our strategy is to pursue capital efficient methods to expand into new markets, bringing our craft quality and value to more consumers. We also continue to make modest investments to improve our outdoor craft cultivation capabilities in preparation for eventual interstate commerce.

FORWARD-LOOKING STATEMENTS

This press release contains statements which constitute “forward‐looking information” within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities. Forward‐ looking information is often identified by the words “may,” “would,” “could,” “should,” “will,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “expect” or similar expressions and include information regarding: (i) statements regarding the future direction of the Company (ii) the ability of the Company to successfully achieve its business and financial objectives, (iii) plans for expansion of the Company into Michigan and securing applicable regulatory approvals, and (iv) expectations for other economic, business, and/or competitive factors. Investors are cautioned that forward‐looking information is not based on historical facts but instead reflect the Company’s management’s expectations, estimates or projections concerning the business of the Company’s future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward‐looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the combined company. Among the key factors that could cause actual results to differ materially from those projected in the forward‐looking information are the following: changes in general economic, business and political conditions, including changes in the financial markets; and in particular in the ability of the Company to raise debt and equity capital in the amounts and at the costs that it expects; adverse changes in the public perception of cannabis; decreases in the prevailing prices for cannabis and cannabis products in the markets that the Company operates in; adverse changes in applicable laws; or adverse changes in the application or enforcement of current laws; compliance with extensive government regulation and related costs, and other risks described in the Company’s public disclosure documents filed on Sedar.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward‐looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update this forward‐looking information except as otherwise required by applicable law.

SAFE HARBOR STATEMENT

This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company’s financing plans; (ii) trends affecting the Company’s financial condition or results of operations; (iii) the Company’s growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words “may,” “would,” “will,” “expect,” “estimate,” “anticipate,” “believe,” “intend” and similar expressions and variations thereof are intended to identify forward-looking statements. Also, forward-looking statements represent our management’s beliefs and assumptions only as of the date hereof. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company’s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors including the risk disclosed in the Company’s Form 20-F and 6-K filings with the Securities and Exchange Commission.

The Company is indirectly involved in the manufacture, possession, use, sale and distribution of cannabis in the recreational cannabis marketplace in the United States through its indirect operating subsidiaries. Local state laws where its subsidiaries operate permit such activities however, these activities are currently illegal under United States federal law. Additional information regarding this and other risks and uncertainties relating to the Company’s business are disclosed in the Company’s Listing Statement filed on its issuer profile on SEDAR at www.sedar.com. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

SOURCE Grown Rogue International Inc.

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

New Jersey Gov. Phil Murphy and Attorney General Matthew J. Platkin announced in a press release that $5.5 million in cannabis tax funds will be going toward New Jersey Hospital-Based Violence Intervention Program (NJHVIP).

The money comes directly from the state’s Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Fund. According to state law, cannabis tax funds consist of money that comes from cannabis taxes and fees to fund a variety of community services and programs.

The NJHVIP is managed by the Division of Violence Intervention and Victim Assistance (VIVA) by way of the Office of Violence Intervention and Prevention. VIVA was initially established by Platkin in September 2022 “with the goal of elevating and formalizing violence intervention and victim services work within the Department of Law and Public Safety.”

“Through the New Jersey Hospital-Based Violence Intervention Program, our Administration is making progress on our commitment to creating a safer state for all New Jerseyans,” said Murphy in a press release. “These innovative violence intervention programs allow providers to tend to vulnerable victims of violent crimes in the early days of their road to recovery in order to break the patterns of violence that have tragically taken the lives of too many New Jerseyans. We will continue to do what we can to support this work to prevent and overcome violence in our communities across the state.” 

“New Jersey’s Hospital-Based Violence Intervention Programs are essential aspects of our comprehensive approach to public safety, and they empower communities to interrupt cycles of victimization and violence,” said Platkin. “Under Governor Murphy’s leadership, we are continuing our historic investment in NJHVIPs by making available $5.5 million for these innovative services. Through this funding, we are making clear that we will use every tool and resource available to combat gun violence and violent crime that affects too many of our communities.”

VIVA executive director, Patricia Teffenhart, also expressed the importance of the NJHVIP. “Our NJHVIP partners are a key part of Attorney General Platkin’s trauma-informed, survivor-centered commitment to building safer, more resilient communities in New Jersey,” Teffenhart said. “By bringing together medical and community-based violence intervention teams that put victims at the center of service, their work supports the kind of healing that helps put victims on the road to recovery and a path to safety.”

The press release explained that hospital-based violence intervention programs like NJHVIP help support victims of crime through unified teams of “hospital clinicians, social workers, case managers, violence interventionists, and community health workers.” Services such as crisis intervention, victim compensation, and more, all serve people in need, and the $5.5 million being granted will help fund these services.

The New Jersey Hospital-Based Violence Intervention Program began in January 2020 with funds from the Victims of Crime Act (VOCA) program. New Jersey was one of the first states to implement a program with VOCA funds.

It began with nine hospital partnerships, including Center for Family Services, Trinitas Health Foundation, AtlantiCare, Capital Health, Jersey City Medical Center, RWJ University Hospital, University Hospital, Jersey Shore University Medical Center/Hackensack Meridian, and St. Joseph’s Health. By January 2023, the number increased to 11.

During his time as governor since 2018, Murphy has helped send $45 million in federal and state funding to various NJHVIP sites. In August 2023, the NJHVIP’s third year of operation, $15 million was earmarked for violence prevention services through the use of the same cannabis fund, including guidance for at-risk youth as well as street intervention services. “For far too long, pockets of our state have been scarred by violence. And, since day one of our Administration, we have been committed to solving this problem,” Murphy said last month. “Through initiatives such as the [CBVI] Programs, we have made great strides on that pledge. I am incredibly grateful for Attorney General Platkin and his team’s steadfast dedication to reducing violence in our state and creating a safer community for all.”

The $5.5 million from the cannabis tax fund for this year will be granted starting in 2024. Organizations that seek to apply for NJHVIP grants can do so by Oct. 18, 2023. According to the Notice of Availability of Funds, applicants may apply for no more than $995,000 per project. A webinar was held on Sept. 29 for interested applicants, but those who did not originally attend on that day can check out a recording of the meeting when it’s published online on Oct. 3.

In news of other community services, three New Jersey attorneys (Andrew Cooper, Michael Hoffman, and John Williams) recently held an expungement service event at the 420 Expo, which was held between Sept. 29-Oct. 1. The “stigma-free celebration of the legal cannabis lifestyle” was host to more than 100 vendors, and also included educational seminars and appearances from celebrity Cheech Marin. “The so-called war on drugs has been particularly hard on minority and low-income communities, and although studies show white, brown, and Black people use cannabis equally, Black and brown people were nearly four times as likely to be arrested for cannabis violations,” Cooper explained. “Despite laws designed to assist these communities, the individuals affected most are also least able to benefit due to a lack of access to information and support. The Expungement Clinics at 420 Expo are intended to provide the kind of meaningful access to information otherwise sorely lacking in society.”

A trio of dedicated attorneys—Andrew Cooper of Falcon Rappaport & Berkman LLP, Michael Hoffman of The Hoffman Centers PC, and John Williams of the Law Office of John D. Williams—are donating their time to help people expunge their records at an upcoming cannabis convention in New Jersey.

People currently sit in prison for cannabis-related convictions that are essentially the same activities that are now legal in dozens of states. Like several other states, New Jersey provided a pathway to expungement, though it usually takes the expertise of a legal professional. Certain low-level cannabis convictions in New Jersey are eligible for expungement, and an on-site legal team at the convention can provide more information about the criteria.

NJBiz reports that running from Sept. 29 through Oct. 1, at the New Jersey Convention and Exposition Center in Edison, New Jersey, the 420 Expo calls itself a “stigma-free celebration of the legal cannabis lifestyle” and will feature more than 100 vendors, live entertainment, educational seminars, celebrity appearances, and most importantly, expungement assistance. 

“People with cannabis convictions often find it impossible to find jobs, housing, or college loans. They often lose their right to vote and the ability to receive public assistance. Many employers won’t hire anyone with a drug conviction or have policies requiring immediate termination if a past drug arrest is discovered—with or without a conviction. The issue is even more profound when you consider that a significant majority of those arrested for cannabis have been simple possession charges,” said Cooper, who is also chair of the Cannabis & Psychedelics Practice Group at Falcon Rappaport & Berkman.

Cooper continued, “The so-called war on drugs has been particularly hard on minority and low-income communities, and although studies show white, brown, and Black people use cannabis equally, Black and brown people were nearly four times as likely to be arrested for cannabis violations. Despite laws designed to assist these communities, the individuals affected most are also least able to benefit due to a lack of access to information and support. The Expungement Clinics at 420 Expo are intended to provide the kind of meaningful access to information otherwise sorely lacking in society.”

Their plans “will provide access to legitimate support that can help people take advantage of their legal rights and make huge steps in achieving their social justice,” said Davis, who is co-founder of 420 Expo. The convention will host Cheech Marin and a lineup of education events and vendors. “We are thrilled to bring this type of necessary social support to our three-day cannabis celebration,” Davis said.

420 Expo will include VIP meet and greets with Marin as well as guest appearances by other cannabis-related celebrities and more than 20 seminars and panels appealing to both casual and experienced cannabis enthusiasts. The event will also feature product demonstrations, gaming areas, contests, glass blowing and axe throwing. Outdoors, there will be a large smoking section in addition to a variety of food trucks.

While THC products will not be sold at 420 Expo, attendees may bring the legal limit for personal use under state law, according to organizers.

420 Expo will be open 5 to 11 p.m. on Sept. 29, noon to 9 p.m. Sept. 30 and noon to 6 p.m. Oct. 1. For more information or to purchase advance tickets to this 21-plus event, visit 420Expo.com.

New Jersey’s Cannabis Expungement Provisions

The Marijuana Decriminalization Law took effect July 1, 2021, and requires the expungement of certain cannabis and hashish cases. As a result, the Supreme Court has ordered that thousands of cases be expunged.

People in New Jersey with low-level cannabis cases can apply for expungement, including those convicted of distribution of cannabis less than one ounce or hashish less than five grams. possession of more than 50 grams of marijuana, or more than five grams of hashish.

If the case included only one of the above offenses and any of the below offenses, it was expunged: Possession of Drug Paraphernalia, Use or Being Under Influence of Controlled, Dangerous Substance, and Failure to Make Lawful Disposition of Controlled, Dangerous Substance.

New Jersey’s legislation does not require that every cannabis-related charge be expunged. If you have questions about your specific case, ask an attorney at the convention or Legal Services of New Jersey. You can go to the court where your case was heard to confirm that your record was cleared and receive a certification. Find more details in Directive #24-21.

Expungement means the cannabis crimes are no longer part of your record, and it won’t end up on a job application, housing application, or college application. The case has been removed from the public record and cannot be used to keep you from school, housing, or most jobs.

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