NJ Monthly Puff: Paramus Goes Adult-Use, TerrAscend Buys Aunt Mary’s, Vireo Absorbs Cannabist
The New Jersey cannabis retail July 2026 story is consolidation and expansion happening at the same time. Rise Paramus flipped to adult-use after five years medical-only, TerrAscend inked a $9 million deal for Aunt Mary’s in Flemington, and Vireo Growth is set to absorb Cannabist assets across five states including New Jersey. Federal pressure is building too, with the DEA rescheduling hearing wrapping up and DOJ suing TerrAscend over a 280E refund claim.
Top Headlines This Month
- Vireo to acquire Cannabist assets across five states for up to $35M
- DEA rescheduling hearing concludes as DOJ sues TerrAscend over 280E
- Concentrates stuck at 3.7% of NJ sales as education gap slows growth
- Rise Paramus adds adult-use sales after five years medical-only
- TerrAscend to acquire Flemington’s Aunt Mary’s for $9 million
Multi-State: Vireo Growth to Acquire Cannabist Assets in Five States for up to $35 Million
Vireo Growth Inc., through subsidiary Vireo Health of Arcadia LLC, has entered into a definitive purchase agreement to acquire cannabis cultivation, manufacturing, and retail assets from The Cannabist Company Holdings Inc. across Colorado, Illinois, Massachusetts, New Jersey, and West Virginia. Total consideration is up to US$35 million, comprised of up to US$18.75 million in cash at closing and up to US$16.25 million in seller notes. The deal is expected to close in stages through calendar year 2026 and into 2027, subject to regulatory approvals in each market. Cannabist commenced CCAA proceedings before the Ontario Superior Court of Justice on March 24, 2026, and Chapter 15 bankruptcy proceedings in the U.S. Bankruptcy Court for the District of Delaware on March 25, 2026, with the U.S. Bankruptcy Court granting recognition of the CCAA proceeding on May 9, 2026. Both Vireo’s board and Cannabist’s Special Committee unanimously approved the transaction. The acquisition would add up to 25 dispensaries, one cultivation asset, and one production asset to Vireo’s portfolio, bringing its pro forma retail footprint to approximately 230 dispensaries, including previously announced acquisitions pending closing, across 15 states. That would position Vireo as the second largest dispensary network in the country, with New Jersey among the markets where ownership of former Cannabist locations will transfer pending state regulatory review.
Federal: DEA Rescheduling Hearing Concludes as DOJ Sues TerrAscend over 280E Refund
The DEA’s administrative hearing on whether to reschedule cannabis from Schedule I to Schedule III was scheduled to conclude July 15, 2026, after testimony that included a leading prohibitionist witness acknowledging cannabis meets the statutory criteria for Schedule III. Separately, DEA officials began conducting on-site inspections at state-licensed cannabis businesses that applied for federal registration under the rescheduling process, with one Michigan dispensary describing a six-hour, collaborative visit. On the tax enforcement front, the U.S. Department of Justice filed suit against TerrAscend USA in New Jersey federal court, according to Dentons, seeking to recover more than $8.3 million plus interest, alleging the company filed an amended 2020 tax return claiming $64.2 million in business deductions it was not entitled to under Internal Revenue Code Section 280E. The DOJ’s suit against TerrAscend USA appears to be the first known government attempt to claw back a 280E-related tax refund from a cannabis company, signaling that federal tax authorities are actively reviewing deductions claimed by state-licensed cannabis businesses. The U.S. Census Bureau reported separately that states have collectively generated nearly $15 billion in cannabis tax revenue since the third quarter of 2021, with $825.1 million recorded in Q1 2026 alone.
New Jersey: Cannabis Concentrates at 3.7% of Sales as Education Gap Slows Category Growth
A report from Higher Function and Lit Alerts found that cannabis concentrates account for just 3.7% of legal cannabis sales in New Jersey, compared to more than 10% in mature markets including Washington, Colorado, Oregon, and Arizona, according to Forbes. Higher Function found the primary barrier to adoption is consumer knowledge, not price or potency. Consumers reported not understanding concentrate types, consumption methods, or how to evaluate quality. At Baked by the River in New Jersey, concentrates now make up 5% of total sales, up from 2.5% in 2025. Owner and CEO Jesse Marie Villars credited the increase to expanded craft product selection and, most significantly, budtender education that makes the category approachable for customers unfamiliar with it. Bashkoff expects New York and New Jersey to gain 1 to 3 percentage points of concentrate market share over the next 12 to 24 months, driven by connoisseur consumers transitioning from the illicit market to the legal one. Concentrates carry premium price points and tend to increase average basket sizes, giving dispensaries a financial incentive to invest in the staff education that the data suggests drives category growth.
Paramus: Rise Dispensary Adds Adult-Use Sales after Five Years Medical-Only
Green Thumb Industries’ Rise dispensary in Paramus began selling recreational cannabis on July 24 after the New Jersey Cannabis Regulatory Commission approved its application to expand into the adult-use market. The store had operated exclusively as a medical cannabis dispensary under Paramus borough code for five years. The expansion was made possible by legislation signed by Gov. Mikie Sherrill that became law May 29. Under the new law, the three existing medical marijuana dispensaries that received local approval to operate before New Jersey legalized recreational cannabis can now obtain a Class 5 cannabis retailer license without additional municipal sign-off. According to NJBiz, Paramus was one of three New Jersey municipalities, along with Cranbury and Secaucus, that had previously restricted cannabis sales to medical patients only, with each town hosting a single dispensary under those rules. The legislation drew opposition from Paramus Mayor Christopher DiPiazza and the New Jersey State League of Municipalities, both of whom argue it overrides local zoning authority. New Jersey recorded more than a billion dollars in recreational and medical cannabis sales in 2025, and more than 300 dispensaries have opened statewide since adult-use sales launched in April 2022. About two-thirds of New Jersey’s 564 towns have opted out of allowing some form of cannabis sales, making the three newly converted dispensaries a notable slice of the opt-out map.
Source:
https://njbiz.com/rise-paramus-recreational-cannabis-sales/
Flemington: TerrAscend to Acquire Aunt Mary’s Dispensary for $9 Million
TerrAscend Corp., a Toronto Stock Exchange-listed cannabis company, has entered into an agreement to acquire Aunt Mary’s Dispensary in Flemington, New Jersey, pending regulatory approval. The deal is valued at $9 million and structured in two parts: a $3 million unsecured convertible promissory note at 6% interest over five years, which provides an option to acquire a 35% stake in the business, plus $6 million payable in cash when that option is exercised. Aunt Mary’s opened in February 2023 and generates over $10 million in annualized revenue from its 5,200 square-foot location in a busy retail corridor in Flemington. If approved, the acquisition would give TerrAscend its fifth dispensary in New Jersey. The transaction was structured to comply with New Jersey cannabis regulations intended to support investment in diversely owned cannabis businesses. TerrAscend said the deal would immediately strengthen its New Jersey earnings and cash flow, with plans to introduce its brand portfolio including Kind Tree, Legend, Valhalla, and Cookies at the location. Executive Chairman Jason Wild described the acquisition as reflecting the company’s focus on disciplined, accretive transactions, and said TerrAscend remains active in evaluating additional retail expansion opportunities in the state.
New Jersey AvailabDeals
Northern Morris County
Asking: $400,000
- Fully licensed location and one of only three approved dispensaries in the municipality
- More than 70,000 vehicles pass the site daily, with direct highway access and 12 to 15 parking spaces
Newark Metro Area
Asking: $600,000 or best offer
- Operational dispensary open for nine months with an established customer base
- Former bank connected to a major bus station, generating heavy pedestrian traffic
Princeton Area
Asking: $1,500,000
- Located near Princeton University with a 2,100 square foot building and 10 parking spaces
- Ten year lease with two additional five year renewal options and $6,000 monthly rent
Northern Passaic County
Asking: $1,500,000 for the business and lease
Asking: $2,250,000 including real estate
- Operating retail and delivery business with more than $2.2 million in reported sales over the last 12 months
- Property sits on 1.5 acres with 40 parking spaces and capacity to expand beyond 100 spaces
Burlington County
Asking: $800,000 for the business and lease
- Operating since 2023 with reported annual sales exceeding $1.5 million
- Real estate may be purchased or leased separately
Bergen County
Asking: $1,500,000
- Open and operating dispensary with meaningful turnaround potential under new management
- Located in a shopping center with 40 shared parking spaces
Camden County
Asking: $1,500,000
- City is permitting only two dispensaries, with state and local approvals already secured
- License allows two additional locations, and approximately $200,000 of buildout remains
Camden County Submarket
Asking: $1,000,000
- 3,200 square foot building with 17 parking spaces
- $6,000 monthly rent after entitlement, with up to 12 months available under the option period
The Bottom Line
New Jersey cannabis retail in July 2026 saw two acquisitions reshape ownership in the state, a long-awaited adult-use conversion in Paramus, and fresh federal tax scrutiny landing on a New Jersey federal court docket. Concentrates remain a small slice of sales, but data suggests staff education could shift that over the next 12 to 24 months.
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