Chemistree Technology Inc OTCMKTS: CHMJF is an investment company dedicated to the U.S. cannabis sector, endeavoring to provide turn-key solutions for the regulated cannabis industry. The Company’s corporate strategy is to acquire and develop vertically integrated cannabis assets, leveraging management’s decades of expertise in the cannabis industry and corporate finance to own and operate licensed cultivation, processing, distribution and retail facilities. Outside of Washington State, Chemistree owns the exclusive worldwide rights to the Sugarleaf brand.
Chemistree Technology Inc OTCMKTS: CHMJF On June 10, 2019 announce that its partner Applied Cannabis Sciences of New Jersey (“ACS”), is readying an Application under the new Request for Applications (RFA) program announced by the Department of Health on June 3, 2019. In total, the Department will seek up to 24 cultivation endorsements, up to 30 manufacturing endorsements, and up to 54 dispensary endorsements. As allowable, ACS will be applying for all three permit types, creating a vertically integrated model for the business.
New Jersey’s State Legislature also passed a medical marijuana program expansion bill (Senate Nos. 10 and 2426) last week that is separate from the RFA announcement. It is anticipated that New Jersey Governor Phil Murphy will sign the bill into law once the aforementioned RFA is underway. This legislation will create another new opportunity to apply for licensure in late 2019 as well, significantly expanding the base of medical cannabis operations in the state as it gears up for a voter referendum on Adult Use legislation in 2020. Gov. Murphy has been outspoken in his support for recreational cannabis use in the state since his election campaign in 2016.
Chemistree partnered with ACS in April 2019 to assist ACS with their qualification process as a potential applicant, and to provide Chemistree with a toehold into the cannabis industry on the eastern seaboard of the United States. This new call for applications marks a significant acceleration by the state of New Jersey to their expansion timelines and ACS is well-prepared to file once the applications become available on July 1, 2019. ACS placed in the top-20 during last summer’s RFA out of 147 applicants, where only six licenses were made available. As such, CHM plans to make an early investment into ACS, acquiring 10 percent of the entity, with an option for a larger stake upon licensure.
This rapid and unprecedented expansion of the medical marijuana program in New Jersey is geared toward increasing the patient count to over 200,000 people, as well as setting up the Adult Use industry in New Jersey.
Chemistree board member Nico Escondido, a New Jersey resident and founding member of the ACS team commented, “New Jersey has a goal to be a national – and, in fact, global – leader in medical cannabis research and development, which is why our partnerships with Rutgers Medical School, Stockton University, and RWJ Barnabas Healthcare is critical to our work. Our goal is to position New Jersey as the epicenter of this work on the east coast.”
Karl Kottmeier, Chemistree’s President stated “When we entered discussions to participate with ACS, we were particularly impressed by the team of industry experts they had assembled, and their deep local knowledge of the dynamic, developing New Jersey market for medical cannabis. The fact that the state authorities have recognized the need to expand the total number of licenses and speed-up their licensing process is certain to be welcome news to a large and under-served population and a huge opportunity for ACS.”
New Jersey is home to over nine million people currently being served by only six existing cannabis operators. Six additional participants were selected in 2018 but have not yet commenced operations. A legal, Adult Use (21+) industry in New Jersey would effectively open up the tri-state area to one of the largest cannabis markets in the country, with the total population of NY, PA and NJ totalling over 40 million people.