The small Multi-State Operator (MSO) Hashstoria dispensary, partially owned by Wu-Tang Clan member Raekwon, has closed in Newark.
Heady NJ heard the news from multiple sources last week while on vacation.
Requests for comments were not answered.
This is not happy news.
Sources say local underground legacy operators and intoxicating hemp smoke shops proved to be too much competition.
Unfortunately, this is not an isolated incident. Many dispensaries in Jersey have reported facing similar issues.
None of the owners were locals. Raekwon is from Staten Island. The noted radio host Charlamagne Tha God and political lawyer Bakari Sellers are from South Carolina.
Their lack of a local network likely did not help. However, Hashstoria generated a lot of press and hype. Raekwon was even on the very popular pro-cannabis Joe Rogan podcast. They had planned a consumption lounge as part of their attraction.
But the NJ Cannabis Regulatory Commission (NJ-CRC) is still in the process of allowing lounges. They told Heady NJ they are approving lounge applications at their next meeting.
Newark Reaction to Hashstoria Closing
Max Maxemous of Urb’n dispensary in Newark found it very troubling that they closed. He noted underground legacy operators never had a cut-throat, survival mode, zero-sum mentality since the cops were the problem versus competition.
“Nobody’s happy about it. That was supposed to be the shining star,” he explained.
(Full disclosure Urbn dispensary was featured at the Heady NJ Legacy to Legal Celebration in January.)
Max is a local serial entrepreneur whose dispensary is by highways. So the location is giving him good traffic to help him stay open.
“It’s very tough. Tougher today than we first opened,” he admitted.
Max acknowledged that overall prices are too expensive in part to pay for red tape compliance to be legitimate.
“We have to pay tons of fees and stuff,” he noted.
Max thought there is extra red tape around a dispensary versus his previous pharmacy, which sold addictive drugs.
He is not optimistic about the state of the market.
“What chance do we got?” Max asked. “This should be a wake-up call!”
He said many are calling about selling dispensaries and licenses.
Max noted licensed dispensaries are regulated, taxed, and fined while competing smoke shops sell are intoxicating hemp in what seems to be the Wild West.
He thought going after shady convenience store and gas station landlords could change things.
Max was worried this might have a domino effect.
So, dispensaries in the more populated North Jersey are not doing well versus dispensaries on the Pennsylvania border in Central and South Jersey, where out-of-towners are coming to buy legal weed. But Delaware adult-use cannabis sales begin August 1st, which might cut the Pennsylvanians crossing the border.
Other NJ Dispensary Closings
Heady NJ has also, unfortunately, confirmed Royal M dispensary closed in Plainfield after also opening up with a great big grand opening and did not survive 2024. Plainfield Mayor Adrien Mapp spoke there, and they gave out different colored lighters experimenting with promotion.
Another dispensary confirmed closed was in Franklin Township called Bleacher’s.
A few MSOs have moved around versus leaving Jersey. For example, the Botanist could not sell adult-use cannabis on the Atlantic City boardwalk, so it moved to another town.
