Strategic Advantage: What Will Set Leaders Apart in the Next Cannabis Cycle

On October 29, the cannabis industry gathered at the Museum of the American Revolution in Philadelphia for the Accelerate Cannabis Mid-Atlantic Summit.

The event drew a focused crowd of operators, regulators, license applicants, financial advisors, and investors, as conversations centered on implementation and potential. The East Coast is organizing for a long due legalization. 

Markets are moving with intention. 

In this post, we’ll let you in on some key takeaways from this interesting event. 

Making History in an Historical Venue

The venue that once hosted debates about forming a nation is now home to another kind of experimentation in governance: building regulated cannabis markets across Pennsylvania, New Jersey, Maryland, Delaware, New York, and Virginia.

The day opened with the Bagel Bash Brunch, co-hosted by Jews in Weed, followed by policy-heavy sessions moderated by regional leaders, including:

• Courtney Davis, Maryland Office of Social Equity
• Tabatha Robinson, Maryland Cannabis Administration
• Christopher Riggs, New Jersey Cannabis Regulatory Commission
• Joshua Sanderlin, Delaware Office of Medical Cannabis
• Jordan Rogers, Archer Public Affairs
• Ellie Siegel, Longview Strategic
• Shawn Casey, Virginia Cannabis Control Authority
• Gregg Hilzer, Stevens & Lee

Each panelist offered a window into how their state is evolving  and what it will take to bridge the gap between regulatory theory and operational reality.

Pennsylvania: Building the Infrastructure Before the Flip

Pennsylvania reaffirmed its position as the anchor of the Mid-Atlantic medical market. With over 440,000 registered patients and nearly $1.7 billion in annual sales, its program already rivals those of states with adult-use access.

While recreational legalization remains off the table for 2025, the legislature’s Senate Bill 49 could prove pivotal. The bill proposes a Cannabis Control Board that would consolidate oversight, standardize licensing, and expand regulatory capacity, a move seen as “laying the tracks before the train arrives.”

In practical terms, the Commission would unify fragmented decision-making, create clearer channels for investors, and provide a structure to eventually regulate both medical and adult-use sales.

The bottom line is that Pennsylvania is professionalizing before it liberalizes. This is a smart move. When the switch flips, the state will be ready to scale with discipline rather than chaos.

Maryland: From Promise to Performance

Maryland’s social-equity rollout is one of the most ambitious in the nation, and it is now entering the hard part. Hundreds of equity licensees are transitioning from policy success stories to operational entrepreneurs. The biggest challenge is not enthusiasm; it is execution.

Panelists from the Office of Social Equity (OSE) and the Maryland Cannabis Administration (MCA) underscored the urgent need for financial literacy, cost discipline, and capital access. Many first-time operators underestimate the runway required to open their doors, with real-estate build-outs, security installations, and local compliance costs often exceeding six figures before the first sale.

The speakers emphasized a clear message: a license is a ticket to the starting line, not the finish line. To close that gap, Maryland launched the Cannabis Technical Financial Assistance Program. The program pairs entrepreneurs with business mentors and accountants who can help structure budgets, manage debt, and forecast cash flow. Operators who invest early in accounting systems, cost tracking, and compliance support will survive long after the initial optimism fades.

Delaware: Flexibility Meets Realism

Delaware’s cannabis regulators offered a quieter but equally important story. The Office of Marijuana Commissioner (OMC) is embracing pragmatism by allowing location variances across counties to help licensees find viable sites.

This policy shift is small but telling. Instead of forcing businesses to abandon their permits when zoning challenges arise, regulators are empowering them to adapt. The flexibility acknowledges the logistical reality of starting a cannabis business in a patchwork of local jurisdictions. It also signals that Delaware aims to balance control with cooperation so that limited licensees can actually open and operate. This approach reflects a maturing philosophy among East Coast regulators, who are now removing arbitrary obstacles and promoting collaborative problem-solving.

New Jersey: Compliance as Collaboration

New Jersey continues to refine one of the country’s most complex regulatory ecosystems. The Cannabis Regulatory Commission (CRC) assigns a dedicated compliance officer to every licensee, which creates an unusual partnership model.

Instead of acting only as distant enforcers, these officers work alongside operators to interpret gray areas and solve problems before they become violations. When regulations and reality collide, as they often do in early markets, this relationship provides clarity and builds trust. The result is a state where compliance is viewed not as punishment but as a  joint responsibility between government and industry. Other states are studying this approach closely.

New York and New Jersey: Labor Peace Agreements and the Cost of Good Intentions

Both New York and New Jersey require Labor Peace Agreements (LPAs) for licensing. LPAs aim to stabilize the workforce and prevent strikes. In practice, they have introduced new layers of cost and complexity.

For emerging operators, negotiating with unions during the fragile start-up phase can strain both budgets and bandwidth. Some licensees report hiring legal counsel months before opening just to navigate these agreements. Panelists also floated Employee Stock Ownership Plans (ESOPs) as a potential alternative. ESOPs can align employee incentives without the administrative weight of union negotiations. ESOPs may also offer tax advantages, which can reduce exposure to the punitive federal 280E rule.

The Anatomy of Failure

A recurring theme emerged throughout the day: Good operators make decisions using data. Struggling operators rely on instinct and optimism.

As VERDANT Strategies partner Mike Goral noted,

“Companies don’t fail because of competition. They fail because they don’t know their numbers.”

From bad leases and weak internal controls to cash shortages and over-leveraged debt, the symptoms are familiar.

Common patterns of collapse include:

• Overpaying for real estate in anticipation of market booms that never come
• Ignoring cost accounting, leaving management blind to true margins
• Treating cash flow as an afterthought rather than a survival metric
• Expanding too quickly and financing growth with expensive debt

Meanwhile, the companies that endure share distinct habits:

• Granular cost accounting that ties every expense to unit output
• Rolling cash-flow forecasting to anticipate shortfalls
• Debt restructuring before distress, not after
• Capital discipline that prioritizes liquidity over often-ego-driven expansion

This is where the difference between ambition and longevity emerges. The next wave of operators will be judged not by how fast they expand but by how well they manage information.

A Reminder of Purpose: Cannabis as Wellness

Amid the financial talk, several speakers reminded the room why this industry exists.

When policymakers view cannabis merely as a tax vehicle, progress slows. When they frame it as a wellness and public-health opportunity, resistance fades.

Wellness-driven narratives, from patient access and veteran care to mental-health benefits, are helping shift public perception. This is especially visible in Maryland and New York, where programs emphasize healing over hedonism.

The more the industry roots itself in wellness, transparency, and community benefit, the easier it becomes to expand access and normalize the conversation.

Preparation Over Speed

Emerging markets reward readiness. The operators that thrive will be those who:

• Build internal systems before opening day
• Track financial performance with rigor, not intuition
• Avoid debt structures that limit flexibility
• Expand deliberately, not reactively
• Keep sight of the mission: compliance, efficiency, and purpose

VERDANT Strategies supports operators across the Mid-Atlantic with:

• Financial strategy and modeling to prepare for expansion
• Application readiness for licensing and investor due diligence
• Cost accounting and internal control design
• Cash-flow forecasting, debt management, and restructuring

If you’re planning to participate in opportunities in Pennsylvania, New Jersey, Maryland, Delaware, or Virginia, the time to prepare is now, before the window opens and capital floods in.

Winners won’t be the fastest. They’ll be the best-prepared.