Preparing To Win

Applying for a cannabis business license is a time-consuming process that requires a tremendous amount of planning, designing, and regulatory compliance preparations. With a limited number of licenses available and six multi-state operators (MSOs) who have already established their footprint in New Jersey, expect the licensing and application process to be highly competitive with little to no room for error. There is currently no estimate or timeline as to when the State will be accepting new applications; however, there is no better time than now to start planning and preparation.

Several critical undertakings should commence before the state issues a Request For Applications (RFA) to increase the likelihood of securing a merit-based license and efficiently run the project from aspiration to operation. First, create a thorough plan and budget that identifies costs (application and CapEx) and assigns responsibilities for all tasks and requirements necessary to submit a comprehensive and compelling application. Once plans and budgets are in place, the source of funds can be determined, and if needed, a fundraising plan and collateral can be created and deployed. This process can be timely and challenging and requires experienced professionals’ expertise to readily secure the required capital and secure these commitments under the best possible term sheet. From there, you must identify a building or land that supports the intended use (Cultivation, Manufacturing, Distribution, Retail) located in a municipality that allows for Adult-use sales. This is becoming more challenging, with nearly 70 municipalities having already issued such moratoriums and others likely, with a deadline of August 21, 2021, to do so quickly approaching. The site and business will need to secure local approval, so initiating strategic conversations with local government and planning officials is crucial to ensuring support when applying for State licensing.

In conjunction with the steps outlined above, vetting and onboarding a team of strategic partners, advisors, and operators will strengthen the case for both the investors and regulators which will ultimately determine the company’s fate. Putting together a team that looks good on paper is essential, but ensuring that the Team can perform as explained in an application has proven challenging for many conditional license holders in other states. The right mix of proven legal, financial, and operational talent with cannabis and business expertise is essential for short-term and long-term goal attainment.

As you are putting these pieces in place, you’ll want to begin developing content and collateral for the application based on adult-use applications from other states and the application process that is already in place for existing Alternative Treatment Centers (ATCs), including the following:

Financial Plan
Cultivation Plan
Distribution Plan
Retail Plan
General Business Plan
Banking Plan
Team Bios
Environmental Plan
Build-out Phasing Plan
Risk-Management Plan
Security Plan
Diversion Prevention Plan
Track-and-Trace Plan
QA/QC Plan
Community Engagement Plan
Labor Peace Agreement
Labor Compliance Plan
Diversity Plan
Workforce Plan
Training Plan
Waste Management Plan

There are certainly many moving pieces and components that all must fit together under regulations to be determined by the Cannabis Regulatory Commission and local authorities. Though the task may seem daunting and immense, Catalyst BC is here to help. Our Team has completed and secured over 45 applications in multiple states, including winning licenses in highly competitive and merit-based application processes. These experiences, along with decades of hands-on experience, provide insight and strategy to develop application content that is compliant, compelling, and comprehensive. There is a fine line between winning and losing; we like to say, “99 isn’t 100”.

Please reach out to collaboratively learn how Catalyst BC can best support your Team and efforts to secure a limited license under New Jersey Cannabis Regulatory Commission guidelines. Contact us today to learn more and schedule a no-cost introductory consultation.

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