New Jersey Gov. Phil Murphy recently visited Prolific Growhouse on May 30 to tour the facility, speak with founder David Nicolas about his journey as a business owner, and learn about the strain named after him.

During the tour, Nicolas showed Murphy various parts of the operation, including cultivation, processing, and packaging. Nicolas explained that he’s looking toward expanding his operation, since he doesn’t currently utilize all of the space he rents out. His plans include an increase in rooms for flowering plants and clones, an updated irrigation system, as well as packing rooms, “a vault,” and an employee break room, according to WHYY. “To finish this, we’ll need $700,000,” Nicolas said. “We were fortunate enough to get a NJEDA grant, which covered a small portion of it.”

Murphy signed the New Jersey Economic Act of 2020 into law in January 2021, which created a seven-year plan to provide $14 billion in “tax incentive, financing, and grant programs that will address the ongoing economic impacts of the COVID-19 pandemic and build a stronger, fairer New Jersey economy.” The New Jersey Economic Development Authority (NJEDA) is the agency that manages such grants, with an overall mission to promote the state economy.

Nicolas is a first generation Haitian American and New Jersey native who sold cannabis to help his family. “I use cannabis to survive and pay bills,” Nicolas explained. “My mom, she had breast cancer [when] I was growing up. By the time I was 13, cannabis was the only way of putting food on the table.”

Later on, when attending Rowan University in Glassboro, New Jersey, he was using medical cannabis personally, but also sharing its benefits with other students in need. He said that athletes would seek him out to obtain cannabis to help manage stress during their finals.

Unfortunately, in 2019 he was being pulled over by police more often. “It wasn’t by normal police,” said Nicolas. “I wasn’t being asked for my ID when I was getting pulled over. It was basically stop and frisk, most of the time.”

This led to multiple arrests, which threatened to end his college career. One of his court appearances was on the day of one of his finals. “I had to explain to my professors who didn’t want me to skip this final on why I had to skip this final, because it was either between my degree or my freedom,” he added.

Nicolas founded PGH in 2021, and in February 2021 Murphy signed three cannabis-related bills into law. A1897 removed criminal penalties for cannabis possession for up to six ounces of flower or 170 grams of hash, decriminalized the transfer of one ounce of cannabis from one adult to another, and reduced distribution penalties for large amounts of product. A21/S2 set up regulations for cannabis production and sales and established a sales tax where 70% would be given back to low-income communities. A5342 implemented new rules for underage cannabis possession penalties that lead to community service rather than prison time, as well as prohibits police from using the smell of cannabis to search youth.

Today, PGH has 10 employees, which adds up to an average age of 25. “This group is probably the youngest in the nation, operating a legal cannabis business,” explained Nicolas. “But everyone here has hustle, and is definitely dedicated towards this company.”

“People who come from my background, especially from the inner city, [most] don’t have the amount of capital that it takes to start up one of these,” Nicolas said about PGH. “I think the state can do a little better; provide more grants, allow the grants that are open for businesses that are non-cannabis to be open for cannabis businesses.”

Murphy expressed his pride in seeing more diverse business owners and operators within the industry, but wants to see more. “I still want to see… more equity, more reward and redemption for the folks who were crushed by the war on drugs,” Murphy commented on Nicolas’ success so far. “You’re a role model for exactly what we want this industry to look like,” he said. “Somebody who has been crushed, sadly, on the one hand by the war on drugs and has reemerged as a bright star.”

The strain, dubbed “Murphy’s Sourz” was originally sold starting in January. “Our Murphy’s Sourz is a dynamic Sativa canna strain, born from the union of Sour OG and Tangie,” PGH wrote on Instagram. “This strain strikes a perfect balance between the uplifting euphoria and calming relaxation, making it suitable to combat stress, anxiety, and pain. The flavor is a delightful mix of sour lemon, sweet tangerine, with hints of diesel and pine.”

Nicolas explained the reason why they chose to name a strain after the state’s governor. “We were like, ‘Let’s try to get Governor Murphy’s attention with this one,’” Nicolas said, according to a WHYY news report. “I didn’t expect him to give me a surprise visit.”  When introduced to his namesake strain, Murphy said he was “honored.”

Following Murphy’s visit, he wrote a brief post on Facebook about his tour experience. “Toured Prolific Growhouse in Mount Holly today to see how our cannabis industry has matured since we passed legalization,” Murphy wrote. “Entrepreneurs like David Nicolas give me hope that we can build a strong and diverse industry that reverses some of the worst effects of the War on Drugs.”

According to the PGH website, Nicolas is committed to both the excellence for his business but also supporting change and promoting equity within the industry. “We not only produce top of the line cannabis products, but seek to invoke change in our communities as well,” said the company. “PGH is committed to making advances for social justice by providing opportunities for those affected by prior cannabis convictions. These opportunities will create progress towards diversity and inclusion within the recreational cannabis industry.”

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Bliss + Lex is a Black woman-owned cannabis dispensary in Manhattan and its team says it’s the first dispensary of its kind to do so in a March 20 announcement. Licensed adult-use cannabis businesses are beginning to appear in New York City as they compete with unlicensed businesses. 

“This is a once-in-a-lifetime opportunity to pull up our own seat at the table in the cannabis industry. As entrepreneurs, we have a chance to create a legacy, change the trajectory of our family’s future and give back to the community in new ways,” said Nicole Lucien, co-Founder and CEO of Bliss + Lex, who is opening the dispensary with her husband, Christopher Lucien. “As a former New York City public school educator, my life has been dedicated to family and community, our careers in service, and now we are proud to share our passion for the plant.”

It is Manhattan’s first Black woman-owned dispensary and a Conditional Adult-Use Retail Dispensary (CAURD) licensee. Bliss + Lex is the second retailer to open in collaboration with the Housing Works CAURD Community Initiative, which provides critical support for New York social-equity cannabis entrepreneurs.

The New York Cannabis Control Board (CCB) met on Feb. 16 and voted on a few new cannabis draft rules, including cultivation and research, and also announced the first round of adult-use licenses. The CCB approved a total of 109 licenses for the state, with 38 licenses that are retail-specific, and 26 that are microbusiness licenses. 

Currently, the only cannabis business license holders in the state were approved under the CAURD program, which were granted specifically to social equity applicants. While those business owners hold conditional licenses, the CCB’s most recent round of licenses are the first non-conditional licenses to be granted, meaning that they did not qualify as social equity applicants.

They benefited from a New York state program that prioritizes giving people with criminal histories the first retail licenses to sell cannabis in the state, as Nicole’s husband has a prior conviction.

“Never in my wildest dreams did I think a cannabis conviction, that until now has created a barrier to jobs, housing, and acceptance, would be the key to this door of opportunity for myself and my family,” said Christopher Lucien, co-founder and COO. “I’ve always been driven to support the underdog in my work in nonprofits serving the homeless, and becoming a business owner is an invigorating way to help my community.”

“Housing Works is honored to work alongside and support the opening of Manhattan’s first Black woman-owned dispensary, Bliss + Lex, through our CAURD Community initiative,” said Sasha Nutgent, Director of Retail at Housing Works Cannabis Co. “This opening marks a big step forward in our efforts to build an equitable market here in New York. Nicole and Christopher represent exactly what NY’s adult-use market needs more of–mission-focused and dedicated to educating and building a fostering community–and we look forward to seeing and aiding the team’s success however they need.”

Nicole is the first Black woman in Manhattan to be awarded a coveted license to open a cannabis dispensary.

Her husband, also on the license, has a prior drug conviction. They benefited from a New York state program that prioritizes giving those with criminal histories the first retail licenses to sell marijuana.

Christopher Lucien, owner, said, “I have tried to start several businesses like my wife was saying home improvement construction, and because of my criminal background I was denied, even after 20 some odd years of a clean record there was never a chance where I had a second chance this was always been held against me.”

CCB chair Tremaine Wright spoke at a recent meeting, expressing his relief that the time has come to move forward with New York’s cannabis industry, beginning with social equity applicants. “This moment has been a long time in the making,” said Wright. “We assure you it only represents the beginning. The office has been diligently working to prepare as many applications as possible for consideration, and the board will continue to approve additional licenses at future board meetings.” He added that the CCB’s goal is to “tackle a number of the matters that we hope will help propel our industry forward.”

The 2,603 square-foot retail store aims to provide highly-individualized consumer experiences including, on-the-go ordering to inclusive, step-by-step walk-through education. Bliss + Lex will carry a range of cannabis products from brands such as Off Hours, 1906, TYSON 2.0, and more. You can visit the retail store located at 128 East 86th St. with close subway access, and it is open seven days a week.  

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Entertainment mogul Sean “Diddy” Combs announced on Friday that he is launching what is billed as the world’s largest Black-owned cannabis brand with the $185 million purchase of existing licensed marijuana operations in three states. Combs is purchasing the business operations from Cresco Labs and Columbia Care, two multistate cannabis operators that are required to divest the assets to complete a previously announced merger of the two companies.

The transaction, if approved by state and federal regulators, would add to Combs’ portfolio of enterprises, which includes ventures in entertainment, media, fashion, and alcohol. Combs, the chairman and CEO of Combs Enterprises, said that he is purchasing the assets to address the inequities of the cannabis industry, where 81% of businesses are white-owned, according to a legislative report released in Maryland this week. 

Many Black entrepreneurs have said that difficulties with financing make it difficult for all but deep-pocketed business owners to succeed in the cannabis industry. The barriers to entering the legal market follow decades of marijuana prohibition that saw Black and Brown people disproportionately arrested and jailed for cannabis-related offenses.

“It’s diabolical,” Combs told the Wall Street Journal. “How do you lock up communities of people, break down their family structure, their futures, and then legalize it and make sure that those same people don’t get a chance to benefit or resurrect their lives from it?”

“My mission has always been to create opportunities for Black entrepreneurs in industries where we’ve traditionally been denied access, and this acquisition provides the immediate scale and impact needed to create a more equitable future in cannabis,” Combs said in a statement. “Owning the entire process — from growing and manufacturing to marketing, retail, and wholesale distribution — is a historic win for the culture that will allow us to empower diverse leaders throughout the ecosystem and be bold advocates for inclusion.”

$185 Million Deal

Under the deal, a new firm controlled by Combs will acquire nine cannabis retail stores and three production facilities in New York, Illinois, and Massachusetts. In return, Combs will pay $110 million in cash and another $45 million in debt financing, plus future payments based on growth benchmarks for a total amount of up to $185 million. Combs said he will leverage the new enterprise to help increase Black participation in the cannabis industry, a goal supported by Cresco CEO Charlie Bachtell.

“For an industry in need of greater diversity of leadership and perspective, the substantial presence of a minority-owned operator in some of the most influential markets in the country being led by one of the most prolific and impactful entrepreneurs of our time is momentous…and incredibly exciting,” Bachtell said in a statement on Friday. “We’re thrilled to welcome Sean and his team to the industry.”

In March, Cresco Labs announced that it would acquire Columbia Care in a $2 billion stock transaction. The merger of the two enterprises forms one of the largest cannabis companies in the United States, with operations in 18 states with legal cannabis including early adopters Colorado and California. But regulations governing the cannabis industry and business licenses require the companies to divest some assets in states where their operations overlap, such as Arizona, Florida, Illinois, Massachusetts, New York, and Ohio.

Bachtell said that the deal with Combs is bigger than the transaction itself, “and it couldn’t come at a time of greater significance and momentum.”

“We’ve seen executive power exercised to address matters of cannabis injustice, we’re seeing bi-partisan support for elements of federal reform, and we’re seeing some of the largest and most influential states in the country launch cannabis programs prioritizing social responsibility– this announcement adds to that momentum,” Bachtell said. “For Cresco, the transaction is a major step towards closing the Columbia Care acquisition and our leadership position in one of the largest consumer products categories of the future.” 

Largest Black-Owned Cannabis Company

The transaction is Combs’ first venture into the cannabis industry and will create the United States’ first minority-owned and operated, vertically integrated multistate cannabis operator in a sector projected to grow to $72 billion by 2030. The vertically integrated operations in New York, Illinois, and Massachusetts will provide Combs’ new company the ability to grow and manufacture cannabis products, while wholesale and distribution assets will market those branded products to licensed dispensaries in major metropolitan areas including New York City, Boston, and Chicago. The deal also includes retail stores in all three states. 

“These assets offer the Combs’ team significant market presence, enabling them to make the most impact on the industry as a whole,” said Columbia Care CEO and Co-founder, Nicholas Vita. “It’s been clear to us that Sean has the right team to carry on the strong legacy of these Columbia Care and Cresco Labs facilities, and we can’t wait to see how he helps shape the cannabis industry going forward through his entrepreneurial leadership and innovation.”

The deal is subject to several conditions, including regulatory approval, clearance under antitrust rules and the closing of Cresco Labs’ acquisition of Columbia Care. The companies are also in the process of divesting other assets to meet regulatory requirements ahead of the closing of the deal.

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The most recent data available from the Washington State Liquor and Cannabis Board (LCB) shows that among all of the cannabis business owners in Seattle, Washington, only 4% are Black-owned. A new report from King5 News interviews minority business owners who lost their place in the industry when Washington State legalized adult-use cannabis, and how a Seattle task force is working on change.

Former cannabis business owners Peter Manning and Mike Asai recall what it was like living in Seattle decades ago. “I know that we use the War on Drugs to go after Black and Brown people,” entrepreneur and Seattle-native Peter Manning told King5. “You guys punish us for years for cannabis. And now it’s okay. Now you’re doing it. Now it’s okay.”

“Growing up in Seattle, in the ‘80s, [if you] just simply had a joint you would get five years in prison,” said Mike Asai, co-founder of the Emerald City Collective. “[I’ve] seen that happen with family and friends and acquaintances, you know, for just that.”

Washington State legalized medical cannabis in 1998, which led both Manning and Asai to pursue a role in the industry. In the 2000s, both of them joined a medical cannabis collective, which brought together growers and retailers in a way that was beneficial to the community.

“To be on the bad end, when it comes to cannabis and then revert to be on the good end was very empowering,” Asai said of the collective. “Because of growing up and just seeing the War on Drugs was really the war on African Americans, the war on Black men and Black women in this country.”

In 2015, the state legalized adult-use cannabis, which forced cannabis business owners to shut down their businesses and re-apply for a license—but many Black and Brown business owners were not able to secure one. “To be legitimate and then all of a sudden now being criminalized…It’s been very traumatizing,” said Asai. “It’s been very depressing and painful to see, especially to see all the money that’s been made since the last six years since we’ve been closed. I’ve had to figure things out. I had to do Uber for about a year, just to stay afloat.”

LCB data from 2021 shows that out of the state’s 558 available licenses, only 19 have been given to Black applicants. “There is zero African American ownership in the city of Seattle, and to be supposedly this progressive state, this liberal state, it’s not showing,” Manning said.

In recent years, both Manning and Asai have spoken with the press and attended city meetings to speak out about this injustice. Recently, they both attended a Seattle City Council meeting on July 20 as public commenters urging the council to address the issue.

The Social Equity in Cannabis Task Force was created in 2020 to establish a social equity program, and to issue and reissue retail licenses. It’s first set of recommendations were submitted on Jan. 6. 2022, with a deadline that a final report be submitted to the state legislature and governor by Dec. 9, 2022.

LCB Board Social Equity in Cannabis Task Force member Ollie Garret told King5 that change needs to happen now. “Yes. I mean…what’s the saying? A day late, and a dollar short. Now the community is screaming, ‘What about us? What about us?’ Garrett said. “We go, ‘Oh, we need to fix this.’”

Garret describes the situation as a “failure” and a “missed opportunity.” “Could it have been done different in the beginning? Yes. But this was a new industry. Who knew, who thought about inclusion and Blacks being left out,” Garret said.

According to King5, the Social Equity in Cannabis Task Force is setting aside 38 licenses for people of color. Unfortunately, over half of the licenses are for business locations in areas that currently ban cannabis. “Where we’re at right now, the LCB cannot move licenses out of the areas that they’re in or create new license[s] without legislation,” Garrett said. “We are going to introduce [that] in this upcoming session.”

Manning questions the task force’s view on equity. “What are you giving me?” Manning said. “A license that says I have the right to sell cannabis? But I can’t sell cannabis because I can’t open up in this location because it’s banned. How’s that equity?”

He also suggests that consumers be conscious about where they choose to buy their cannabis. “There’s white-owned stores in our Black neighborhoods,” Manning said. “Ten years ago, you were locking us up for the same thing. White people were making millions of dollars. You’re taking that money out of our community, and they’re putting it in the white community. We want our Black-owned stores in our communities.”

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The Gwinn brothers were born and raised on Florida farms. They’re now the first Black farmers in the state licensed to grow medical cannabis.

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Black history isn’t just for February and celebrating Black excellence in cannabis is something we can, and should, do year-round.

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Explore what it means for Al Harrington and Jarrel Howard to build on the idea of Black family in the cannabis industry.

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Find out how Virgil Grant made his stamp on Los Angeles’ social equity program despite setbacks and incarceration.

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Supernova Women are warriors for equity and justice, and they are ready to help small cannabis businesses in Oakland recover.

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Pick the roster of 420-friendly NFL players you would roll one with.

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