Shinnecock Nation Will Open Tribally Owned Cannabis Dispensary This Fall

TILT Holdings Inc. TILT TLLTF announced on Tuesday that its subsidiaries, SFNY Holdings Inc. and Standard Farms New York LLC have entered into a membership interest purchase agreement with CGSF Investments, LLC, a wholly owned subsidiary of PowerFund Holdings II LLC, pursuant to which CGSF acquired from SFNY all the membership interests in Standard Farms NY for $1.4 million.

Standard Farms NY holds a 75% interest in CGSF Group LLC, which was formed to establish vertical cannabis operations on the Shinnecock Nations aboriginal tribal territory in the Hamptons on Long Island, New York.

The cannabis project development firm Conor Green Consulting, LLC will continue to hold a minority interest in CGSF Group, the Phoenix-based company said.

Following the transaction, PowerFund Partners will work in partnership with the Nation on the final stages of development of the Little Beach Harvest dispensary. The company said the facility is nearing its completion and is slated to officially open this coming autumn.

"Changing market dynamics have caused us to evaluate the best approach to the New York market," said TILT Holdings interim CEO Tim Conder.

In 2021, Tilt teamed up with Little Beach Harvest, a new cannabis business entirely owned by the Shinnecock Nation, a federally recognized Native American tribe living on its traditional lands on Long Island, N.Y.

Decision To Cut Its Social Equity Brands

Under Conder's leadership, the company recently shocked many when it decided to cut ties with various brands that had a significant focus on diversity and social equity.

Conder will undoubtedly shed some light on the company's motive for this decision as he is a featured speaker at the upcoming Benzinga Cannabis Capital Conference in Chicago on September 27 - 28.

See also: Diversity Driving Profits: How Inclusion Is Reshaping The Cannabis Industry

Roz McCarthy, owner of Black Buddha Cannabis (BBC) and founder and CEO of Minorities for Medical Marijuana (M4MM) challenged TILT Holdings on its seemingly contradictory actions.

"You retained brands that lack diversity, so what message are you sending?" McCarthy asked in response to Tilt Holdings' sudden split with its social equity brands, including Her Highness, Highsman and Black Buddha. 

McCarthy is also a featured speaker at the upcoming Cannabis Capital Conference in Chicago.

The Benzinga Cannabis Capital Conference, the place where deals get done, is returning to Chicago on Sept 27-28 for its 17th edition. Get your tickets today before prices increase and secure a spot at the epicenter of cannabis investment and branding.

Photo: Courtesy of Iryna Rahalskaya on Shutterstock