The Marijuana Regulation and Taxation Act has been introduced to legalise, tax and regulate recreational cannabis for adults that are 21 years and over in New York State and paves the way for the growth of a potential US $4.2 billion industry.
() (FRA:1X8) welcomes the Marijuana Regulation and Taxation Act (MRTA) to legalise, tax and regulate recreational cannabis for adults that are 21 years and over in New York State.
This legalisation is set to unlock a market expected to become one of the largest in the USA, with an estimated value of US$4.2 billion.
New York Governor Andrew Cuomo said in a statement: “For generations, too many New Yorkers have been unfairly penalized for the use and sale of adult-use cannabis, arbitrarily arrested and jailed with harsh mandatory minimum sentences.
“After years of tireless advocacy and extraordinarily hard work, that time is coming to an end in New York State.”
One of largest recreational cannabis markets
Introduction of the MRTA follows long-term attempts to legalise recreational cannabis in New York State – this legislation would create a new Office of Cannabis Management (OCM), which would be controlled by a Cannabis Control Board.
The OCM would then regulate the sale and distribution of both recreational and medicinal cannabis in New York State.
Under the new legislation, it is expected that up to three ounces of marijuana would be legal to possess.
If passed, New York State would become the fifteenth US state to legalise recreational marijuana[i].
The MRTA will pave the way for the growth of an industry that could generate tens of thousands of jobs and lead to the creation of one of the largest recreational cannabis markets in the US.
Leading cannabis executive appointed
In line with Creso’s focus on growth opportunities and commitment to increasing its presence in the US, it has appointed leading cannabis executive John Griese as director of US business development, bringing around 30 years of experience in sales, CPG operations and supply chain management.
His role will centre on New York, Vermont and other states to delineate a strategy for Creso to begin delivering products into the USA.
The company anticipates federal legislation will occur in the US during 2021.
Establishing strong US footprint
Non-executive chairman Adam Blumenthal said: “The recent legislative push in New York State highlights the ongoing shift towards the federal legalisation of recreational cannabis and John’s appointment shows Creso Pharma’s commitment to establishing a strong footprint to unlock value for our shareholders.
“To already have boots on the ground in the US will provide the company with a key advantage over our competition.
“John has established relationships in the US market through his roles in California and Toronto and we look forward to leveraging his network in the coming months.”
Knowledge of US cannabis sector
Griese was previously chief operating officer of Supreme Cannabis Company, where he was directly responsible for product development, commercialisation initiatives, procurement, manufacturing operations and supply chain management.
He was also chief operating officer at Blooms Farms, a branded cannabis manufacturer and distributor in California. This role enabled him to implement numerous processes necessary to meet requirements for the regulated adult-use marketplace in California.
Both roles have left him with considerable knowledge of the North American cannabis sector as well as several established relationships that he will be able to leverage to drive growth for Creso Pharma.
Commenting on his role, Griese said: “The North American market provides a significant opportunity for Creso Pharma and I look forward to working with the company to assist in growing its foothold in the US.
“I look forward to working with management to develop a strategy that will ensure Creso becomes a market leader in the US.”
US OTC listing progress
Creso Pharma’s anticipated US OTC market listing is expected in three weeks, which is set to provide additional exposure to the North American market.
The proposed listing timing is favourable following the recent regulatory developments in the New York State and the potential federal legalisation of recreational cannabis in the US.