Want To Sell Medical Marijuana In New York? It Could Cost You $30 Million

Krane says a majority of the manufacturing build-out costs will come from upgrading older east coast facilities to handle a power- and water-intensive process. The new license-holders must have plants in the ground by the end of January to avoid revocation. Companies must also build out the four allotted dispensaries and outfit them with intensive security systems, which Krane estimates can cost from $250,000 to $1 million per store. Once these dispensaries are up and running, patients will begin to shoulder some of the burden of the restrictive legislation, he says. Only medical practitioners approved by the states Department of Health can prescribe medical marijuana cards, which requires a four-hour education course and application before they can issue cards to patients. Krane says he expects this requirement to further limit access points for patients. Additionally, dispensaries can only sell five brands of medical marijuana, and only in liquid or oil forms; smokable products are prohibited. These offerings wont be well-suited to a lot of patients, Krane says, because of limited ratios of THC the psychoactive component and cannabidiol which helps treat epilepsy, anxiety and other conditions and the restricted forms of ingestion. As for pricing, the New York Department of Health must approve product prices which will include a 7% sales tax for each dispensary, potentially leading to low flexibility in pricing ranges for patients.

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