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Acreage Holdings, one of the nation’s largest cannabis cultivation, retail and real estate companies, announced it is buying a South Jersey medicinal marijuana dispensary.

Acreage entered into a management services agreement with its acquisition target, Compassionate Care Foundation of Egg Harbor Township, in May 2018 to open a 100,000-square-foot cultivation site in Gloucester County. The acquisition arrives as the Department of Health is in the process of revising the state Medicinal Marijuana Program rules to allow dispensaries to operate as for-profit entities.

Cannabis legalization is expected to figure heavily into lame duck discussions in the Legislature as elected officials either push forward an adult-use bill or a ballot referendum punting the issue to voters in 2020.

CCF, which opened in October of 2013, is one of the original six operators with a vertically integrated license, meaning they’re permitted to grow, process and retail cannabis. CCF has been pursuing opening up satellite locations in Atlantic City and Williamstown.

Under the terms of the agreement, Acreage, which has licenses or partnerships in 20 states, will acquire 100% of the equity interests in CCF and consolidate their financials. The deal is subject to the approval by the state.

“I’m thrilled to finally welcome CCF into the Acreage family,” Acreage CEO Kevin Murphy said in a statement. “This reorganization will result in increased access to affordable medical cannabis for New Jersey’s existing patients in short order. Moreover, we have long believed that upon adult-use legalization, the New England and Mid-Atlantic regions will be the preeminent cannabis market in the U.S. and Acreage is best positioned of any U.S. cannabis company to benefit.”

Acreage, in its press release, touted estimates by Arcview Market Research which anticipates $317 million in legal medical cannabis sales in New Jersey by 2022.

Acreage, whose board members include former Speaker of the House John Boehner and former Mass. Gov. William Weld, last year retained the services of Philip Norcross’ lobbying firm, Optimus Partners, for consulting services.

Philip Norcross is the chairman of Optimus Partners, CEO of the law firm of Parker McCay, and a trustee of Cooper Health System. His brother, George Norcross, is the executive chairman of the insurance firm of Connor Strong & Buckelew, chairman of the board of trustees of Cooper Health System and Cooper University Hospital, and a longtime Democratic power broker in south Jersey politics. Donald Norcross, another brother, is New Jersey’s congressman for the 1st District.

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Justin Zaremba may be reached at jzaremba@njadvancemedia.com. Follow him on Twitter @JustinZarembaNJ. Find NJ.com on Facebook.

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