Governor Kathy Hochul has announced that Chicago Atlantic Admin, LLC (“Chicago Atlantic”) will invest up to $150 million in the New York State Cannabis Social Equity Investment Fund. This investment will support the Fund in reaching its funding goal of $200 million, which was set by legislation to provide support for individuals affected by the unequal enforcement of cannabis prohibition.
With Chicago Atlantic’s investment, justice-impacted individuals who have received Conditional Adult Use Cannabis Dispensary (CAURD) licenses from the New York State Office of Cannabis Management and Cannabis Control Board will be able to start their businesses. The funds will be used to secure, lease, design, construct, and furnish turnkey dispensaries for eligible CAURD licensees.
The State of New York will contribute $50 million to the Fund, which will be funded from state cannabis industry revenues. Together with Chicago Atlantic’s investment, this funding will provide low-interest loans to CAURD licensees to repay the set-up costs associated with the Fund program.
Chicago Atlantic is an experienced investment firm with expertise in real estate credit, direct lending, and risk management. They manage a diversified portfolio of credit investments and have a strong presence in the cannabis industry. Their investment will support the Governor’s initiative and the development of the cannabis industry in New York, particularly in promoting social equity.
The Social Equity Servicing Corporation (SESC), a subsidiary of the Dormitory Authority of the State of New York (DASNY), will be responsible for developing the dispensaries as an agent for the Cannabis Social Equity Investment Fund.