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Be the first with the news that moves the market- Acreage Holdings (CSE:ACRG.U) has its hand in opening Atlantic City’s first cannabis dispensary, but a question of local competition has arisen
- The dispensary, part of a chain called ‘The Botanist’, opened on Saturday
- But Compassionate Care Foundation (CCF), the company that operates The Botanist, has raised an issue with the state of New Jersey allowing a competitor to possibly move in nearby this year
- CCF formally lodged an appeal, with a New Jersey judge expected to make a decision within two weeks
- Shares in Acreage Holdings on the Canadian Securities Exchange fell 4.55 per cent on Wednesday for a $4.40 valuation
Acreage Holdings (CSE:ACRG.U) has made the distinct achievement of opening Atlantic City’s first cannabis dispensary.
The New York headquartered company opened the dispensary on last Saturday. However, as per New Jersey law, the dispensary can only give business to card-holding patients. Recreational marijuana is still outlawed in the state.
The dispensary is part of a chain called ‘The Botanist’, and is operated by the Compassionate Care Foundation (CCF)
This latest addition in Acreage Holdings’ portfolio marks the 31st operational dispensary across 12 states under its care. This dispensary on the Atlantic City boardwalk is the 13th CCF owned dispensary for Acreage Holdings.
Marijuana interest in Atlantic City has seen huge uptake in the past year, as the state Department of Health allowed another a dispensary to start growing their product in a Pleasantville facility.
The competing dispensary that earned the grant, MPX NJ, also has plans to open its own commercial dispensary near The Botanist.
CCF has since lodged a formal complaint with the state Department of Health — urging for the government to ‘spread dispensaries throughout the state’.
“It’s an access issue, not a competition issue,” CCF Chairman David Knowlton said this week.
“There is no dispensary in Salem, Gloucester or Cape May counties, so the opportunity to spread these out is right there.”
“Yet they put two within spitting distance. It’s inappropriate.”
MPX has previously stated that it plans to open its New Jersey boardwalk dispensary within the first quarter of this year.
A judge of New Jersey is expected to rule on the issue within the next two weeks.
Shares in Acreage Holdings depreciated 4.55 per cent on Wednesday for a $4.40 valuation on the Canadian Securities Exchange.
