Selling a single cookie for $400 and then "gifting" the customer with an ounce of cannabis was a business model that was never going to last.
Now that cannabis has been mostly-legalized in New York and New Jersey, several entrepreneurs came up with creative ways to try and skirt the laws prohibiting the unlicensed sale of cannabis by selling ordinary items and then "gifting" the cannabis to the customer.
The attorney general decided to play nice with these companies (in my opinion) and rather than making sweeping arrests, played softball by sending them cease and desist letters.
I had a client ask me to help them start one of these businesses several months ago. I told them it would be completely illegal and a terrible idea, considering that they’re applying for adult-use licenses in the upcoming round.
Be patient friends. The legal cannabis industry is coming faster than you may think.
If you're seriously considering applying for cannabis business licenses, you'd better get moving.
Although the licensing regulations and the license applications have not yet been announced, the application competition has already begun... people are already investing heavily in application preparations.
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