Cannabis Saga In The Empire State: Corruption Or Ineptitude? Private Equity Tramples Social Equity, Report Reveals
In June 2022, New York Gov. Kathy Hochul announced a deal had finally been reached to fund a $200 million public-private effort, which would finance cannabis dispensaries run by the people who have been the most impacted by the war on drugs.
The much-anticipated public-private fund is now coming under scrutiny following an investigation by THE CITY’s Rosalind Adams, which uncovered a “lopsided deal” favoring the private equity firm Chicago Atlantic Group and raising concerns about the state’s social equity goals.
The agreement heavily favors Chicago Atlantic, leaving the state exposed to significant risks, noted the outlet.
Even the New York Office of Cannabis Management (OCM) cast doubts on the fund’s viability according to internal OCM documents that questioned whether the deal had overstated the potential revenue and profit potential.
What Happened
New York state, unable to secure a private equity partner, agreed to a $50 million loan from Chicago …