Jacob Redmond
Well-Known Member
South Jersey's second medical marijuana dispensary has yet to open, but its owners have offered to buy the management rights of its competitor in Atlantic County, NJ Advance Media has learned.
Compassionate Sciences, Inc., which began growing its first marijuana crop in Bellmawr last month, approached the investor group for Compassionate Care Foundation about six weeks ago with an offer to operate the dispensary, located in Egg Harbor Township, David Knowlton, CCF's co-founder and board chairman confirmed Thursday.
The Egg Harbor dispensary opened in October 2013 and serves 1,130 registered patients, Knowlton said. After the dispensary lost its CEO last year and a period of economic uncertainty, "We have turned it around," he said.
Andrei Bogolubov, spokesman for Compassionate Sciences, a subsidiary of PalliaTech Inc. declined to discuss the matter. "We can't comment on rumors," he said.
New Jersey's medical marijuana law allows six nonprofit entities to cultivate and sell cannabis, with two each located in the northern, central and southern portions of the state. Three are open: in Montclair, Woodbridge and Egg Harbor. Compassionate Sciences is expected to open in the fall.
Knowlton said the board is awaiting a formal offer from PalliaTech. But he admitted to having some questions about whether one entity should control the south Jersey's medical marijuana market.
"I wonder whether that would meet the spirit of the law," Knowlton said.
Assemblyman Reed Gusciora (D-Mercer), one of the sponsors of the medical marijuana law, said the intent was to foster competition to help keep prices down.
"Obviously if someone has a monopoly, the competition for price control is taken off the table," Gusciora said. "I hope the state does not allow a merger at this point. It's one thing if there are 85 (dispensaries) in New Jersey. We were only starting with six to see how they work."
Approximately 5,300 patients and caregivers and 392 physicians are enrolled in the program.
New Jersey dispensaries charged from $440 to $560 for an ounce of cannabis in 2013, more than 1o other states and Washington D.C. that operated medicinal marijuana programs at that time, according to an analysis by The Star-Ledger.
PalliaTech's owners have applied to become one of New York edible cannabis producers when that state's program launches in 2016. The company hired John O'Brien, the retired State Police lieutenant who ran New Jersey's medicinal marijuana program until April, to be the chief compliance officer for its New York operation.
News Moderator: Jacob Redmond 420 MAGAZINE ®
Full Article: N.J. medical marijuana merger? 1 offer to manage competitor | NJ.com
Author: Susan K. Livio
Contact: Slivio@njadvancemedia.com
Photo Credit: The Associated Press
Website: New Jersey Local News, Breaking News, Sports & Weather - NJ.com
Compassionate Sciences, Inc., which began growing its first marijuana crop in Bellmawr last month, approached the investor group for Compassionate Care Foundation about six weeks ago with an offer to operate the dispensary, located in Egg Harbor Township, David Knowlton, CCF's co-founder and board chairman confirmed Thursday.
The Egg Harbor dispensary opened in October 2013 and serves 1,130 registered patients, Knowlton said. After the dispensary lost its CEO last year and a period of economic uncertainty, "We have turned it around," he said.
Andrei Bogolubov, spokesman for Compassionate Sciences, a subsidiary of PalliaTech Inc. declined to discuss the matter. "We can't comment on rumors," he said.
New Jersey's medical marijuana law allows six nonprofit entities to cultivate and sell cannabis, with two each located in the northern, central and southern portions of the state. Three are open: in Montclair, Woodbridge and Egg Harbor. Compassionate Sciences is expected to open in the fall.
Knowlton said the board is awaiting a formal offer from PalliaTech. But he admitted to having some questions about whether one entity should control the south Jersey's medical marijuana market.
"I wonder whether that would meet the spirit of the law," Knowlton said.
Assemblyman Reed Gusciora (D-Mercer), one of the sponsors of the medical marijuana law, said the intent was to foster competition to help keep prices down.
"Obviously if someone has a monopoly, the competition for price control is taken off the table," Gusciora said. "I hope the state does not allow a merger at this point. It's one thing if there are 85 (dispensaries) in New Jersey. We were only starting with six to see how they work."
Approximately 5,300 patients and caregivers and 392 physicians are enrolled in the program.
New Jersey dispensaries charged from $440 to $560 for an ounce of cannabis in 2013, more than 1o other states and Washington D.C. that operated medicinal marijuana programs at that time, according to an analysis by The Star-Ledger.
PalliaTech's owners have applied to become one of New York edible cannabis producers when that state's program launches in 2016. The company hired John O'Brien, the retired State Police lieutenant who ran New Jersey's medicinal marijuana program until April, to be the chief compliance officer for its New York operation.
News Moderator: Jacob Redmond 420 MAGAZINE ®
Full Article: N.J. medical marijuana merger? 1 offer to manage competitor | NJ.com
Author: Susan K. Livio
Contact: Slivio@njadvancemedia.com
Photo Credit: The Associated Press
Website: New Jersey Local News, Breaking News, Sports & Weather - NJ.com
