NY tells over 100 cannabis licensees they must move 😬

NY, NY
New York’s Office of Cannabis Management screwed up locations for over 100 licensees

Driving the news: Just as New York’s embattled cannabis market appeared to be turning a corner, another wave broke across the bow. 

What happened: The Office of Cannabis Management, the state’s chief regulatory agency, announced that it made a mistake when it previously approved 105 licenses that were technically too close to schools.

The office originally calculated the 500-foot buffer zones starting from the school's front entrance, when it should have been 500 feet from any point of the school property line. This means that 105 active licensees and 47 pending applicants are too close.

The OCM says it has notified affected business owners, and that they may seek coverage of up to $250,000 to find a new location. More information on the OCM’s website here. 

What they’re saying: “I am keenly aware that this information will have repercussions for you, your business, and your community,” Felicia AB Reid, the OCM’s Acting Executive Director, said in an email to the operators, obtained by City & State New York. 

“You have poured your energy, time, savings, dedication, and heart into the promise of New York’s cannabis industry. To give you this news, and for the weight of it, I am incredibly sorry.”

And more: New York Times reporter Ashley Southall has more details. The OCM disputed her characterization on social media, though it’s not yet clear why. We don’t know either but will update you tomorrow if we hear more. 

What’s next: The OCM is pushing for a legislative fix to the discrepancy, but if there is no new law passed, the 105 licensees — of which 62 are operational — will have to relocate before their annual renewal.

Our take: At a certain point, the buck stops with Gov. Kathy Hochul. She’s been in office long enough. If these issues are the result of understaffing at the OCM, or whatever they may be, it’s up to her to fix it. Or at least, push the legislature to pass a fix quickly. 

Every market needs effective regulation. This is a pretty big error. Expect there to be lawsuits. 

-JB & ZH

"Working in cannabis retail is really fulfilling, but to be able to create a space where people can explore this product, safely consume it and learn hands-on — it's creating a new dynamic to the Jersey market that we just have not had," SunnyTien Dispensary Chief Operating Officer Spencer Belz said.

SunnyTien is home to one of New Jersey's first four cannabis consumption lounges which the state’s Cannabis Regulatory Commission approved earlier this month.

The Philly Voice has more.

New DEA head doesn’t list rescheduling as top priority 🙃

Despite telling lawmakers earlier this year that restarting the paused process to reclassify cannabis from the most restrictive Schedule I to the less restrictive Schedule III is one of his “top priorities,” when confirmed as Drug Enforcement Administration head, rescheduling didn’t appear in a press release listing Terrance Cole’s priorities. Still, the top priority includes “affirming the DEA’s commitment to enforcement,” which could, in a charitable interpretation, include rescheduling. Cole was confirmed last week by the Senate. Read more about his complex stance on cannabis, here. 

Texas House introduces its own hemp ban 📜

State Rep. Gary VanDeaver introduced HB 5 on July 28, which mirrors the hemp ban proposed in the Senate last week. VanDeaver said that he was swayed to support a ban earlier this year when he ultimately supported SB 3 before Gov. Greg Abbott vetoed it. 

Minnesota operators struggle to find banking services 🏦

Would-be entrants to Minnesota's emerging cannabis market are discovering what pretty much every other legal operator in other markets are well-aware of. Most banks want nothing to do with cannabis. The Minnesota Star Tribune has more. 

BC cannabis on the rise 📈

Wholesale cannabis sales in British Columbia, Canada increased in the first quarter of 2025 compared to last year in almost all categories (disposable pens, infused pre rolls, and resin). Total wholesale sales reached $150.5 million from April to June 2025 and the province has added 16 stores in 2025. Wholesale delivery in the province has largely consisted of flower (44.7%), pre-rolls (23.4%) and inhalable extracts (24%).

LIT ALERTS’ INSIGHTS
How many SKUs should a retail store carry?

The question comes up often during pre-open planning as retailers get set to open. Usually, it remains an ongoing discussion after the store opens and enters the endless phase of optimizing menu space. As you would expect, there is no single answer and much of the answer lies in the analysis of your local market.

Below is a look at the averages in the core East Coast adult-use markets for key categories.

Maryland leads the pack with stores carrying the greatest variety. This most likely stems from Maryland having the lowest store density so stores are forced to carry a larger assortment. Maryland has also maintained its focus on the medical market which may be a factor in why they lead in vapes and concentrates, products with higher dosing capability.

Interestingly, Maryland finds itself in the middle of the pack in the pre-roll category where New York leads. New York over-indexing on the convenience forms of smoking and vaping is no secret so it makes sense to see New York in the first or second spot for those categories.

Vapes continue to see an upward trend in popularity in New York and New Jersey as stores in these states carry the most SKUs in the vape category, outpacing both flower and pre-rolls.

Massachusetts carries far fewer SKUs per store than Maryland and New York and looks a lot more like New Jersey, with the glaring exception of vapes, which stores are carrying close to the same amount as their much smaller neighbor to the south, Connecticut.

Please note that accessories and apparel SKUs were pulled from this analysis as the analysis was focused on cannabis items.

Have a look at Lit Alerts’ exclusive insights. 👇

To learn more about Lit Alerts and get a special offer only available to Cultivated readers, visit litalerts.com.

Oregon edible producer Grön buys into New York market 🍬

Grön announced that it acquired a processor license in New York, along with a 10,000 square-foot processing facility in Hauppauge, NY. The acquisition reflects a more hands-on approach to production for the company, which had relied on licensing deals to enter markets in the past. 

And more:

• California edibles brand Dr. Norm’s launched an infused Matcha Crispy Rice bar. Yum.

• AYR Wellness extended its temporary agreement with senior secured noteholders to July 29, 2025, waiving certain defaults related to delayed financial statements and potential payment issues. Read more.

Trump recommends pro-cannabis lawmaker to lead RNC 👀

President Trump recommended Florida Sen. Joe Gruters, a vocal cannabis advocate, to lead the Republican National Committee. Gruters backed the failed bid to legalize cannabis in Florida.

Tilray reports fiscal year results 📈

Canadian cannabis and beverage producer Tilray reported its full year and fourth-quarter results. It’s now as much a cannabis company as a beverage company.

Let’s break it down: 

• For the full year, the company reported a $2.1 billion loss on $821 million of revenue. 

• For the fourth quarter, the company reported a $1.27 billion net loss on $229 million of revenue.

• The company says these losses are the result of non-cash impairment of goodwill and intangible assets.

• The company says international cannabis revenue increased 71% in the fourth quarter, though total cannabis revenue declined from $72 million to $68 million in the fourth quarter compared to the year prior.

• Beverage revenue hit nearly $66 million in the same quarter, down from $77 million the same quarter a year prior.

• The stock closed up nearly 2%.

Check out the full results.

The DEA’s New Boss Holds the Keys to Weed Reform: Will He Take Action? | High Times

Maine public health group continues focus on medical cannabis testing | Spectrum News

Cannabis at a crossroads: Nevada industry continues to navigate regulatory challenges | KTNV Las Vegas

Explore Revealing Documents From Ousted Cannabis Agency Chair's Ongoing Legal Battle | Talking Joints Memo