An individual who was 39 years old and had been in prison for selling drugs for 16 years has successfully established a cannabis business that generates $800,000 in monthly revenue.

A lot can change in 16 years.

In 2009, Coss Marte received a seven-year prison sentence for a drug conviction. Now, in 2021, Marte anticipates earning up to $12 million by selling cannabis legally.

Conbud, founded by Marte, 39, is a fully-licensed cannabis business in Manhattan and the first on the Lower East Side. It opened its doors in October 2023 and added a second location in the Bronx in April 2023.

Marte's business currently generates approximately $800,000 in monthly sales, with a profit margin of nearly $100,000, according to CNBC Make It's review of relevant documents. Marte anticipates a total revenue of roughly $7 million by the end of 2024.

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In 2013, Marte was released from prison early and started a fitness business called Conbody, which was based on his workout routine while in prison. In 2021, New York legalized the sale of recreational cannabis and expunged all past convictions for marijuana-related offenses.

A year after the state announced that entrepreneurs with past marijuana convictions would be eligible for retail licensees, Marte saw a golden business opportunity due to his experience running Conbody and the requirements laid out by the state.

"According to Marte, the requirement for a cannabis license was two years of a net profitable business and a conviction on your record. However, she notes that not many people meet this criteria."

From prison workouts to multiple businesses

As a teenager, Marte was exposed to an illegal drug trade on the Lower East Side, which eventually led him to become involved in the trade at the age of 13, according to his account.

"As a child, individuals would inquire of Marte, "What do you aspire to be when you become an adult?" To which Marte would respond, "I wish to be wealthy." The initial chance for Marte to achieve this goal emerged through the realm of drugs. Consequently, Marte began dealing marijuana."

While in prison, doctors informed Marte that he was obese with dangerously high cholesterol. In response, he began performing intense body-weight exercises that he could do within the confines of his cell. After being released from prison, Marte linked up with Defy Ventures, a nonprofit organization that provides entrepreneurship instruction and business coaching to ex-offenders.

In 2014, Marte launched Conbody with a $10,000 grant from Defy, and now the company generates around $1 million in annual revenue.

Marte spent $2,000 to apply for a retail cannabis license eight years ago. He invested around $50,000 of his own savings into Conbud, which he used for Conbody and speaking engagements. Additionally, he raised nearly $1.2 million in seed funding from friends and family, who are now part-owners of the business.

New York mandates that the "justice-impacted" license-holder must maintain a 51% ownership stake.

Marte states that Conbud's startup funds were used to cover the $400,000 security deposit at the Lower East Side retail location, construction costs, payroll, and inventory. The business opened in October 2023 and generated approximately $250,000 in monthly revenue until authorities shut down hundreds of unlicensed cannabis operators last year.

Eyeing growth in a highly competitive market

The New York crackdown was advantageous for licensed retailers such as Marte, who struggle to secure a lasting presence in the industry.

While the state's Office of Cannabis Management emphasizes its dedication to promoting "social and economic equity" in the legal cannabis market, critics fear that small businesses may eventually be overshadowed by larger corporations with a broader reach.

In 2023, Curaleaf, one of the largest dispensary owners in the U.S. with annual revenues over $1.3 billion, began adult-use sales in Queens, New York.

Marte's profit margin is only 13% due to high rent and labor costs. If cannabis becomes legal on a federal level, he could access federal tax deductions and lower banking fees.

He predicts that the 13% profit margins will eventually increase to 25%.

Marte states that both Conbud and Conbody primarily hire workers who have been "justice impacted," meaning either they or a family member were incarcerated for a past drug conviction. In total, he employs 72 individuals who meet this criteria.

Marte, who left prison with $40 and a bus ticket, ended up on his mom's couch while trying to figure out how to make a living with a drug conviction on his record. He notes that without his own second chance, he would never have found himself in this position.

""Our community is expanding rapidly, and I am grateful for it," says Marte."

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