A first-of-its kind $200 million social equity fund in New York that’s been promised to qualified marijuana entrepreneurs is still awaiting its first investment that would help bankroll the effort, fund managers told MJBizDaily.
Under the state’s Marijuana Regulation and Taxation Act (MRTA), the first 150 adult-use cannabis retail licenses are reserved for nonprofits and “justice involved” social equity applicants.
ADVERTISEMENT
In addition to “turnkey dispensaries” leased by the Dormitory Authority of New York, the law also set up a state-overseen investment fund that equity applicants can tap for startup capital.
The state pledged to contribute $50 million to the social equity fund, with the remaining $150 million to come from private-sector investors.
However, despite a Sept. 1, 2022, deadline to secure “capital commitments,” the state hasn’t yet secured funding, Reuben McDaniel III, DASNY’s president and CEO, told MJBizDaily.
“We have a great investor base, we’re negotiating
Read full article on Marijuana Business Daily
