New York is beginning its seek for a fund supervisor for New York’s $200m social fairness hashish fund. In January of 2022, Governor Kathy Hochul introduced that New York is continuing with the $200m fund (as contemplated within the Marijuana Regulation and Taxation Act (MRTA)), with $50m of funds dedicated by the State and a plan to boost the extra $150m from outdoors buyers.
DASNY has been integral in New York’s plans for an efficient social fairness fund, issuing the RFI that we write extensively about right here and assuming accountability for leasing the retail areas that may represent the spine of the conditional retail dispensary licenses (see our publish right here).
As a quick refresher, the social fairness fund can be used for “direct and oblique bills related to the sourcing, leasing, planning, design, development and equipping of the RCD (retail hashish dispensaries.” The funds issued to licensees can be within the type of a non-recourse, normal unsecured debt obligations of the RCD operator (i.e. no private ensures required).
Primarily based on the fund’s construction (each from the angle of its predominantly non-public funding and deployment of capital as loans), discovering the precise supervisor to solicit buyers and deploy capital can be essential. Provided that the RFI is fairly open concerning the dangers related to investing, discovering the precise individual could also be a tall order. From the RFI:
“Because the Fund’s main goal can be to advance the general public objective of offering social and financial candidates chosen and licensed by CCB with a commercially viable RCD operation, the last word return supplied to Fund buyers could also be restricted and in danger.”
New York has determined to be on the forefront social fairness, and the social fairness fund is one other step in the precise course. Keep tuned for additional developments in New York’s hashish market!