NY clears legal hurdle to issue cannabis licenses in the Finger Lakes region, as pot stocks rise

The New York State Cannabis Control Board on Tuesday approved a settlement to a lawsuit that prevented it from issuing licenses in the Finger Lakes region. The state approved the settlement with Variscite NY One Inc., which won an an injunction against the state in federal court last year based on allegations that New York violated interstate commerce rules when it limited its first rounds of cannabis licenses to New York residents affected by the War on Drugs and local non-profits last year. The federal injunction initially applied to five regions of New York, but it was later pared back to only the Finger Lakes region. The Cannabis Control Board approved the Office of Cannabis Management to enter into a settlement agreement and stipulation of dismissal between Variscite and the office. Financial terms of the settlement were not fully disclosed but the state agreed to grant an adult use license for Variscite NY One when those licenses become available, officials said on a video of the meeting posted online. Separately, the state also set plans to step up efforts to shut down illegal cannabis shops. Shares of cannabis companies with exposure to the New York market rose. Curaleaf Holdings
CURLF,
+7.84%
is up 6.5%, Green Thumb Industries
GTBIF,
+5.81%
is up by 5.5%, Columbia Care Inc.
CCHWF,
+9.66%
is up by 7%, Cresco Labs
CRLBF,
+11.18%
is up by 8.5% and RIV Capital
CNPOF,
+4.44%
is up by 4.4%. The AdvisorShares Pure U.S. Cannabis ETF
MSOS,
+6.70%
is up by 5.7%.