The Cannabist Company Holdings Inc. (NEO: CBST) (OTCQX: CBSTF) (FSE: 3LP), formerly Columbia Care, was approved Friday by the New York Office of Cannabis Management (OCM) for adult-use wholesale distribution.

The New York cannabis operator said the wholesale distribution of recreational cannabis began immediately, while adult-use retail sales will begin at a later date upon payment of the required fees.

The Cannabist's brands, including Seed & Strain and Hedy edibles, will be available to both existing and newly approved adult-use dispensaries with its first sale to Herbal IQ, a retailer with five locations near Buffalo and Rochester. Additional brands will launch in the coming months, pending regulatory approval.

Etain Joins The Game

RIV Capital Inc. (CSE:RIV) (OTC:CNPOF), an acquisition and investment firm with a focus on building a multi-state platform with a strong portfolio, also announced that the NY Cannabis Control Board approved Etain, LLC's transition to an adult-use operator with cultivation, processing, distribution and retail operations.

The company will now be able to provide an assortment of products, including high-quality flower, pre-rolls, vapes and edibles to the recreational as well as maintain its medical marijuana (MMJ) operations.

In addition to expanding into adult-use wholesale operations, the company anticipates opening its first co-located MMJ and adult-use retail dispensary in early 2024, followed by two additional co-located dispensaries on or around July 1, 2024.

New York Cannabis Market Is Yet To Grow

The NY Supreme Court lifted an injunction preventing the OCM from processing retail dispensary licenses earlier this month. That injunction had been in place since August when a group of disabled veterans sued over the licensing process.

Nicholas Vita, CEO of The Cannabist Company shed light on what's next.

"New York is going to rapidly become the largest cannabis market in the country, and we are ready to supply that growing demand from our scaled cultivation and manufacturing facilities in Long Island and Rochester, with premium and enjoyable products," Vita said. "As we begin to launch our wholesale partnerships across the state, we will concurrently evaluate and plan for the opening of our first adult-use retail location in New York City."

Other marijuana companies that were permitted to sell adult-use cannabis include NYCANNA LLC, which is owned by Acreage Holdings Inc. (CSE:ACRG) (OTCQX:ACRDF), PharmaCann of New York LLC and Valley Agriceuticals LLC, which is owned by Cresco Labs (CSE:CL) (OTCQX:CRLBF) (FSE: 6CQ).