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The Gold Rush of NJ Cannabis Leasing: Avoiding a Few Traps for the Unwary
It has now been a couple months since the pell-mell months of July and August, when we had 13 leases, two options and multiple letters of intent to negotiate, finalize, execute or terminate for various clients in the span of a few weeks in connection with their applications for medical cannabis licensure in the state of New Jersey.
During this past summer, New Jersey decided to double the number of medical cannabis licenses from six to 12. Existing license holders were not eligible to apply for new licenses in this round. New applicants had essentially six weeks to compile a licensure application, file the required licensure fee and paperwork, and submit their no-more-than-300-page application. Since the licensure was for both growing cannabis and the distribution of medical cannabis, the application included various background checks, qualifications and submissions intended to show that the applicant had the necessary business knowledge, financial capability and growing and distribution ability.
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