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HARTFORDBUSINESS.COM | JUNE 10, 2024 15 Still River Wellness' Torrington dispensary, at 3568 Winsted Road, debuted in 2019 and was the only cannabis retail store in Litchfield County until June 8, when a competitor opened in the same town. CONTRIBUTED Massachusetts cannabis brand expanding to CT CT hires first cannabis ombudsperson, as number of medical marijuana patients is on decline By Skyler Frazer sfrazer@hartfordbusiness.com A fter a lengthy search and more than a half-year late from when it was prom- ised, state officials have named Connecticut's first cannabis ombudsperson tasked with repre- senting the interests of medical marijuana patients and their caregivers. Erin Gorman Kirk, of Norwalk, will serve in the ombudsperson post, which state offi- cials are touting as the first such position in the country. She started in the role on May 28. Gorman Kirk is the founder of Cannabis Government Strategies, which touts itself as a Wash- ington, D.C. boutique lobbying firm for the cannabis, hemp and CBD industries. She has a back- ground in cannabis and hemp policy advising in several states, including Connecticut, according to state officials. The position, which was created by the legislature in 2023, was originally supposed to be filled in October, but that deadline wasn't met. Gorman Kirk was selected over more than 800 applicants with input from patients and legislators, officials said. Medical cannabis users and advocates have supported the creation of the ombudsperson to ensure medical patients aren't left behind as the state's recreational industry continues to grow. Since recreational sales launched in January 2023, the number of registered medical marijuana patients in the state has declined by 18%, to about 40,028 patients at the end of April 2024, according to Department of Consumer Protection data. Some medical patients have expressed concerns that their medicine of choice — like a partic- ular cannabis strain or product — has been harder to find as the state's growers shift their focus to supplying the adult-use market. There have also been numerous complaints filed over the years against medical marijuana growers, related to product quality and other issues. Erin Gorman Kirk promotional pricing, which Farrell said restricts how the company can compete with its cheaper competi- tion over the Massachusetts border. Macre compared it to liquor stores being allowed to have signs in their windows advertising the lowest prices on certain products, which is a prevalent tactic. "We already struggle so hard to get information to our customers and to promote sales to compete with the black market in Massachusetts, and now they're limiting our ability to do that," Farrell said. "It doesn't seem like rational regulation." By Skyler Frazer sfrazer@hartfordbusiness.com O n the heels of a $20 million private equity investment, a vertically integrated multistate cannabis operator is preparing to launch in Connecticut after building business roots in a neighboring state. Nova Farms, a Massachu- setts-based cannabis company with a network of marijuana dispensaries and outdoor cultivation farms in three states, announced in May that it secured a $20 million invest- ment from alternative investment firm Chicago Atlantic. With the new infusion of money, Nova Farms CEO Derek Ross said the company plans to expand its existing footprint in New Jersey, and establish a presence in the Nutmeg State. "Historically, raising money in cannabis was a lot easier than it is now," Ross said. "Banks are really honing in on what it takes to run this business — it's not a get-rich-quick business that people thought it was." Northeast expansion Ross opened Nova Farms in 2016, and the company has since grown to about 400 employees spread across an outdoor cultivation farm and three dispensaries in Massachusetts; a farm and dispensary in Maine; and another farm and retail storefront in New Jersey. The business sells its products through a variety of brands, such as Southie Adams and Sticky Fish, to name a few. The company says its farm in Shef- field, Mass., is the largest outdoor cannabis cultivation operation in the Northeast, and Ross hopes to repli- cate that outdoor model's success in Connecticut. Ross is partnering with entrepreneur Jason Teal — who owns a restaurant in Hamden and operates a Meriden educa- tion nonprofit called Change The Play Inc. — for the company's Connecticut expansion. The duo has a social equity cultivation license in the state, which also allows them to open a few retail storefronts. Plans for dispensa- ries in New Britain and Bridgeport are being finalized. "I think build-out in New Britain will be done in September, and I think Bridgeport should be done towards the end of the year, or definitely by (the first quarter) of next year," Ross said. Still River is still searching for an outdoor farm location. Chicago Atlantic recently iden- tified Nova Farms as one of just a few cannabis businesses it was interested in investing in, Ross said. Chicago Atlantic was particularly attracted to the company's Northeast growth plans. "Nova Farms has demonstrated its ability to operate successfully and identify attractive opportunities to accelerate progress," said Peter Sack, a partner at Chicago Atlantic, which has made over $2 billion in credit and equity investments. "We have every confidence in their plans to open additional locations across the Northeast, which will support their mission to increase safe and positive accessibility." While Connecticut and New Jersey expansions are the near-term focus, Ross said New York also pres- JAN 23 FEB 23 MAR 23 APR 23 MAY 23 JUN 23 JUL 23 AUG 23 SEP 23 OCT 23 NOV 23 DEC 23 APR 24 JAN 24 MAY 24 FEB 24 Medical marijuana patients registered in CT Source: Dept. of Consumer Protection 50K 40K 30K PATIENTS Jason Teal ents growth opportunities. And the company is interested in potentially bringing on more equity investors for future expansions in the region. "One of my mentors a couple years ago told me, 'make sure you dig yourself deep, don't spread yourself thin,' and we're going to keep that mentality," Ross said. "We're probably not going to go any further south than Maryland, if we get there. There's 60 million people up here (in the North- east), and this is the area we want to really focus on our consistency, our formulations, our practice and just get it perfect."