Business
New York City nonprofit preps for Day 1 of adult-use marijuana sales as state’s only operating retailer
Housing Works Cannabis Co. is located in a Manhattan building that once was home to a Gap store.
Housing Works’ nonprofit status, decades of legacy service in the community and retail experience uniquely positioned the organization to become New York’s first licensed adult-use marijuana store to open for business.
And likely the only one to launch sales before the calendar flips, falling short of market projections from the state’s top politico only a few months ago.
Its newly established brand, Housing Works Cannabis Co., will have a soft opening Thursday – aptly at 4:20 p.m. ET – at its 4,000-square-foot location in Manhattan’s NoHo neighborhood, ushering in a new era for New Yorkers and the millions of tourists who visit annually.
“We are excited, we’re nervous. But most of all, we’re really proud to be a part of this historic moment,” store manager Sasha Nutgent told MJBizDaily.
“And to be the first.”
Housing Works’ unlikely route to the inside lane of the cannabis industry’s most closely watched market launch in years began only a few months ago.
That truncated timeline is as remarkable as the nonprofit’s evolution from providing services for the homeless and those with HIV/AIDS to selling recreational marijuana in a potentially billion-dollar market.
New York adult-use retailers are projected to generate $1 billion-$1.2 billion in sales in 2023 and $2.2 billion-$2.7 billion by 2026, according to the 2022 MJBiz Factbook.
Preparing for launch
Construction crews and Housing Works staffers have been working round the clock to convert a long-vacated Gap location into a completely different type of retail space.
The nonprofit’s legacy of operating 10 thrift stores and two bookstores in Brooklyn and Manhattan helped the cause.
As did Nutgent’s experience running several of Housing Works’ retail stores over the years.
Operators received the keys only last week for the storefront, located within 1 Astor Place, a terra cotta building completed in 1883 that features mixed-use retail and more than 170 residential units.
Consultants and architects were instrumental in designing the space under tight deadlines.
Other short-order work included:
- Finalizing point-of-sales systems.
- Meeting with growers, brands and manufacturers.
- Selecting products.
- Hiring and training 14 staffers – a mix of former medical marijuana dispensary workers, industry newbies, retailers and some with tech backgrounds.
One staffer is a client of Housing Works, which also provides job training and custom services for New Yorkers recently released from incarceration.
The story will offer consumers an array of cannabis products as New York isn’t expected to see inventory shortfalls other emerging adult-use markets have experienced.
Housing Works plans to offer 700-1,200 SKUs (stock-keeping units), including a variety of edibles, tinctures, pet treats, vapes, flower, pre-rolls and accessories, for Day 1 sales, according to Nutgent.
On the fast track
It appears Housing Works and the state’s other seven nonprofits with conditional adult-use retail dispensary (CAURD) licenses might have a faster track to open brick-and-mortar stores than the other 28 CAURD awardees who plan to establish for-profit enterprises.
That’s largely because nonprofits under New York’s developing cannabis program can’t access state-vetted properties and funds earmarked to help social equity retailers.
These restrictions might increase capital concerns for operators, but they also lessen compliance requirements, minimizing processing approvals and delays that typically come with cannabis regulation and government support.
Above all else though, Housing Works had a retail-ready property and experience entering and serving diverse retail markets throughout the city.
“They already have infrastructure, a very apparent location and ability to come into the market,” said Trivette Knowles, spokesperson for New York’s Office of Cannabis Management (OCM).
“Once we gave the provisional licenses to these licensees, we gave them the autonomy and the freedom to conduct their business in an entrepreneurial manner and how they saw fit.”
The goal of New York’s equity-driven approach was not only to help those wronged by the government’s war on drugs to secure marijuana business licenses but also to develop a system to boost their chance for prolonged success.
Housing Works filed its application in late September, and two months later, it was among the state’s first 36 retail license winners approved to sell recreational cannabis in one of the nation’s most regulated states.
It’s not uncommon for that approval process to drag on for well over a year in other adult-use markets.
“The turnaround was insane,” Nutgent said.
A different approach
New York regulators plan to issue as many as 175 retail licenses, including 25 earmarked for nonprofits, which have to meet the following criteria:
- A history of serving current or formerly incarcerated individuals, including creating vocational opportunities.
- Have at least one social justice-involved board member.
- Employ at least five full-time workers.
- Operate a social enterprise with net assets or a profit for at least two years.
In guidance issued in late November, regulators allowed qualifying businesses to launch delivery services before opening their retail stores, another significant change from other recreational markets.
“OCM is doing something different,” Knowles said. “OCM is trying something different.”
In yet another departure from the norm, all Housing Works Cannabis Co. proceeds will be redirected to fund community services provided by its parent company, Housing Works.
The organization was established in 1990 to address the HIV/AIDS pandemic as well as the homeless crises, which has exacerbated since the COVID-19 outbreak.
In October, more than 65,000 people, including nearly 21,000 children, were sleeping in New York City’s primary shelter system alone.
Such rates have not seen since the Great Depression, according to statistics compiled by the Coalition for the Homeless.
The parent Housing Works also offers other community services such as COVID-19 testing, addiction counseling, health care, housing, legal help and other assistance programs.
“All the proceeds go toward those programs within Housing Works that help us get our mission done,” Nutgent said.
New year, new resolutions
Housing Works Cannabis Co.’s mad dash to the finish line isn’t what many envisioned for the initial rollout of adult-use sales in the influential New York market, which is expected to rival some of the nation’s largest when fully operational.
Though the store opening gives regulators and Gov. Kathy Hochul a victory after insisting for months recreational sales would start by year’s end, Housing Works is expected to be the lone operator up and running this year, falling well short of market expectations.
Hochul said in October that the state was “on track” to open 20 adult-use stores in 2022, with another 20 retail outlets per month coming online.
January now promises to be a ramp-up month, though several concerns regarding social equity funding, securing property on favorable lease terms, state-supported retail locations and other operational requirements persist, prompting some license holders and applicants to adjust business plans on the fly in the run-up to adult-use sales.
“Within the next couple of weeks, specifically following the New Year, we’re going to see a lot of developments,” the OCM’s Knowles said.
An ongoing lawsuit challenging residency requirements has also stymied progress, halting the issuance of dozens of licenses in Brooklyn, Central New York, the Finger Lakes, the mid-Hudson area and Western New York.
Through it all, Housing Works overcame some rather overwhelming odds to be the first adult-use store in the state to open its doors this year – and in Manhattan, no less.
“We really fought hard to build a team and find architects and designers to get the store open in time, because we wanted to commit to the city’s promise to open before 2023,” said Nutgent, who’s prepped her staff for an expected busy day on the sales floor and checkout counters.
“We are expecting hundreds of people.”
Business
Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light
Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).
The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.
India’s Indigenous LEO Satellite Vision
Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.
The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.
According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.
The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.
Regulatory Process Moves Forward
Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.
The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.
Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.
Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.
Broadband, Mobile Connectivity, and Strategic Applications
Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.
The company also intends to establish 20 to 22 ground stations across India to support network operations.
Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.
Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.
Major Step for India’s Space and Telecom Sectors
Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.
The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.
Business
Alleged Crores Pharma Scam Mastermind Arrested from Surat
After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.
Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.
Fake Business Deals and Dishonoured Cheques Used in Fraud
Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.
In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”
Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.
Multiple Identities and Repeated Fraud Pattern
Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.
Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.
Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.
Multi-State Surveillance Leads to Arrest in Surat
A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.
Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.
Growing Threat of Corporate Identity Fraud
The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.
Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.
Experts Urge Stronger Due Diligence in High-Value Transactions
Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.
Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.
Business
EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices
A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.
Investigation Under Digital Markets Act Gains Momentum
The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.
Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.
Industry Groups Demand Swift Action
Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.
Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.
In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.
Google Denies Allegations
Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.
However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.
Potential Billion-Euro Penalties
If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.
Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.
Wider Implications for Big Tech
The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.
A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.
As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.
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