Breaking into the Cannabis Industry: New Jersey

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With New Jersey set to release the Adult-Use cannabis applications in the upcoming weeks, many are curious about how to enter the cannabis industry. It’s important to note New Jersey has prohibited “Full Vertical Operations” which is a common industry term used to identify a company who hold multiple license types. Therefore, the “Full Vertical” is used to describe an operation which holds a Cultivation, Manufacturing, and Retail license. Below we have broken down the six different license classes, permitted license type combinations, and limitations of specific license types.

Cannabis Licenses Available in New Jersey

Class 1 Cultivator

  • Capped at 37 licenses
  • Can: Hold one manufacturing license 
  • Cannot: Hold a wholesaler, distributor, delivery, or retailer license

Class 2 Processing

  • Can: Hold one cultivation license
  • Cannot: Hold a wholesaler, distributor, delivery or retailer license

Class 3 Wholesaler 

  • Can: hold a distributor license as an additional license
  • Cannot: Hold a cultivator, processing, retail, delivery or micro

Class 4 Distributor 

  • Cannot: Hold another license type.

Class 5 Retailer 

  • Cannot: Hold another license type.

Class 6 Delivery

  • Cannot: Hold another license type. 

Microbusiness 

  • cannabis grower, processor, wholesaler, distributor, retailer, or delivery service.
  • Has no more than 10 employees
  • Operate in space of no more than 2,500 square feet area.
  • Process no more than 1,000 cannabis plants each month except a distributor’s possession for transportation.
  • Processor cannot acquire and process no more than 1,000 pounds of cannabis in dried form each month.
  • Wholesaler cannot acquire for resale no more than 1,000 pounds each month. 
  • Retailer cannot acquire for sale no more than 1,000 pounds each month.

How Can Point7 Help?

As experts in the cannabis industry, we share the details of the newly regulated adult-use market in New Jersey. Are you ready to expand your cannabis business into new markets? Reach out to see how Point7 can help your business.

About the Author

Ashley Picillo cannabis consulting

Ashley entered the regulated cannabis market in the spring of 2014. She joined one of the largest vertically integrated cannabis businesses in Colorado as the head of marketing, operations and sales. Ashley oversaw day-to-day operations of five dispensaries, a high volume extraction facility. In addition, she managed a 23,000 square foot cultivation facility and 70+ employees. Ashley developed, documented, and implemented the vast majority of the company’s standard operating procedures (SOPs). She also created detailed forecasting models, and calculated the facility’s overall production capacity.

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