Australis Capital Inc. has entered into an agreement with Hempire Farms, LLC, a New York based cannabis company licensed to cultivate, process and distribute cannabis products in the New York State adult-use market. The agreement between Audacious and Hempire is contingent upon state approval.
New York cannabis market
With 20.2 million people, New York is the fourth largest U.S. state by population. Industry insiders project the state's adult use market to reach $4.2 billion by 2024. New York State has implemented the initial phase and is working towards implementing an adult use program, including finalizing regulations for the full program. The state has introduced rules that enable certain hemp license holders to obtain provisional cannabis licenses to serve the adult use market. AUDACIOUS' partner, Hempire, meets all requirements and was awarded an Adult-Use Conditional Cultivator License. The license also includes the ability to manufacture and distribute cannabis products - activities that the state has yet to fully define.
New York operation
AUDACIOUS and Hempire intend to commence planting its first batch of adult use cannabis towards the end of June 2022, with first harvest anticipated some 8-10 weeks later. Under the regulations, the Company is allowed to have one acre of canopy, which equates to approximately 1.5 acres in total space. Based on its deep experience in cannabis cultivation, the Company anticipates this to yield approximately 2,100 lbs of dried flower and trim. The operations will be located in Broome County, New York.
As announced by the regulators, intent is for product to be sold through the first batch of adult use dispensaries, with approximately 150 retail licenses to be awarded to social equity applicants.
Expanded early mover advantage
With work commenced at the company's project with its partner First Americans of the Saint Regis Mohawk Tribe, this is AUDACIOUS' second early start project in New York State. (NYS) While adult use has been legalized, industry insiders anticipate that operators under the new licenses for hemp farmers provide an early mover advantage of at least one year. During this time, AUDACIOUS will be able to introduce its products to the New York market and build up market share and brand recognition.
Quick start cultivation operations have been designed in the past months by the company's majority owned subsidiary ALPS, whose crop consultants have developed optimized operational protocols to ensure the company will be able to serve the market with high quality product.
Management commentary
Terry Booth, AUDACIOUS CEO, commented, "This truly is a transformational deal for AUDACIOUS. We promised our investors we would focus on the east coast, and now our hard work has come to fruition. With both New York State and New Jersey State licenses in place, this deal makes AUDACIOUS one of, if not the best positioned MSO to capitalize on the massive opportunity presented by the East Coast cannabis market. Moreover, this NYS license, combined with the First Americans project, enables entry into this nascent market before adult use is opened up for general license application, giving us a substantial early mover advantage that we are well set up for to execute on. We have been preparing for this project for months now, and are ready to roll with planting, equipment, employees and operational SOPs. Our New York team, including ALPS and our advisors, have done an amazing job in securing this opportunity for us and we look forward to working with the Hempire founders, David and Jordan, to get started and serve the people of New York with our high-quality adult use cannabis products."
David Seamans, co-founder of Hempire, added, "The operational excellence at AUDACIOUS brings a broad range of experience, from financing, through to cultivation design, crop consulting, manufacturing, recognized brands and logistics. These were all crucial elements in us selecting AUDACIOUS as our partner in capitalizing on a huge opportunity for hemp farmers in New York. Their inclusive approach, as reflected by their partnership with First Americans of the Saint Regis Mohawk Tribe, was another important factor that showed us that their partnership approach is genuine and not just lip service to look good in the media. AUDACIOUS, in our eyes, embodies how inclusion should be done, and we are very excited to be working with Terry, Duke, Leah, Thomas and the rest of the AUDACIOUS team towards executing on this incredible opportunity."
For more information:
Audacious
www.audacious.net