In February 2018, iAnthus acquired Citiva Medical, LLC, which holds one of the ten vertically integrated medical marijuana “Registered Organization” licenses in New York State, and Citiva, LLC (together with Citiva Medical, LLC, “Citiva”), the owner of certain regulated cannabis industry assets and intellectual property. As one of only ten vertically integrated medical marijuana licenses in New York State, Citiva’s license includes a cultivation and processing facility and four dispensary locations, which will be located in Brooklyn, Staten Island, Dutchess County, and Chemung County. Citiva received its license in August 2017 and is currently in the process of building out its team and facilities.
Operational highlights for Citiva:
- Finalizing design phase for approximately 39,500 square-foot modular cultivation and processing facility in Orange County, NY, which will support more than 2.2 million grams of annual production. Buildout anticipated to begin in Q2 2018;
- Engaged in negotiations with multiple Registered Organizations to gain access to wholesale product;
- 2,000 square-foot flagship dispensary located in high traffic area across from Barclays Center in Brooklyn, New York is expected to open in Q4 2018; and
- Negotiating and finalizing leasing agreements for dispensaries in Staten Island, Dutchess County and Chemung County.
Why We Love New York
New York, home to over 20 million residents, offers an attractive competitive landscape and promising patient growth. New York’s medical marijuana program expanded significantly in 2017 by adding chronic pain and PTSD to the list of qualifying conditions, publishing the names of qualifying practitioners, allowing nurse practitioners and physician assistants to issue medical marijuana recommendations to patients, and implementing home delivery. The program also includes a wide range of allowable secondary products. There are over 50,000 certified patients in New York and patient growth continues to accelerate.
Full cannabis legalization is likely on the horizon for New York given the changing sentiment from key political figures. Governor Andrew Cuomo commissioned a study on regulating and taxing cannabis for adult-use in January 2018 and has cited a strong commitment to full legalization. Gubernatorial Democratic candidate, Cynthia Nixon, has publicly announced her support for cannabis legalization as part of her campaign.
Citiva’s flagship dispensary in Brooklyn will be one of only three dispensaries located in New York City’s most populous borough, with 2.6 million residents. The Staten Island dispensary will be the only Registered Organization serving Staten Island’s 500,00 residents and the Dutchess County and Chemung County dispensaries will serve populations of 300,000 and 70,000, respectively.