With little fanfare or advance notice, the Dormitory Authority of the State of New York (“DASNY”) released a request for information (“RFI”) last month to determine interest and solicit information from qualified parties for an investment fund to finance “the establishment and development of adult-use retail cannabis dispensaries (“RCDs”)” for social and economic equity applicants. This is the $200 million social equity fund (the “Fund”) that is referenced in the Marijuana Regulation and Taxation Act which New York Governor Kathy Hochul announced on January 5, 2022.
News had trickled out in terms of what the fund would look like: earmarked funds for adult-use dispensary applicants, a mix of private and public funding, etc. Now we have the RFI itself, which is full of enlightening information on both the planned mechanics of the Fund as well as the CCB and OCM’s planning for New York’s cannabis industry. Let’s dive in:
Public and private funds would be used
The anticipated start date of the Fund would be in the Spring of 2022 (soon!), with a 10 year term from full capitalization. During the Fund’s term, all capital would remain committed, which means that investors would not be able to withdraw their funds.
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