Leef Brands Inc. (CSE: LEEF; OTCQX: LEEEF), the former Icanic Brands, announced on Tuesday it signed a binding letter of intent for acquisition of Tier 1 processing license in New York and becoming multistate operator.
A press release issued by the company said they have secured and installed equipment at a 7,000 square-foot location in New York to enable “rapid market entry with minimal capital expenditures.”
“New York represents an immense opportunity for LEEF Brands, particularly considering that concentrations account for 55% of cannabis products sold here,” LEEF CEO Micah Anderson stated in a statement.
As New York’s cannabis market has flourished rapidly since 2023 when sales surpassed $160 million, to an expected estimated total sales revenue of approximately $1 billion by 2024 according to data provided by New York State Office of Cannabis Management cited by the company, it could reach as much as $1.5 billion by 2025.
LEEF recently unveiled plans to replicate its California business model in New York by offering distillate, hydrocarbon and solventless extracts sourced from California brand partners already operating here. LEEF plans on capitalizing on existing relationships by building up on them through partnerships formed previously.
“LEEF has spent eight years honing its craft in California’s highly-competitive cannabis market,” according to Anderson. “Expanding into New York marks only the initial step of our plan to replicate our successful business model in other markets across the U.S.”
LEEF’s recent production capacity increase in California – 66% increase for ethanol extraction capacity and 50% boost for solventless extraction – has necessitated this expansion. Earlier this month, they reported these gains.
LEEF’s focus has shifted away from consumer packaged goods production towards bulk concentrate manufacturing, according to Green Market Report.
Anderson noted that their New York expansion would enable them to “exploit new revenue streams by 2025, increase margins, and diversify market sources while simultaneously upholding high quality standards”.
Hey all, we are extremely delighted to share some exciting news: Leef Brands will soon become an MSO and enter New York! LeefBrands recently signed an official Letter of Intent to obtain Tier 1 processing license in New York state, giving us access to its $1.5B cannabis market in 2025.
Key Highlights for Jesse Redmond (@jesseredmond) on February 18, 2025 : Secure… pic.twitter.com/R8wsR3Op9M