US senators raise heat on President Biden, demand marijuana reform

US senators raise heat on President Biden, demand marijuana reform:

A group of U.S. senators is trying to increase pressure on the Biden administration to remove marijuana from the federal Controlled Substances. Act, citing earlier promises of marijuana reform.

marijuana reform

Six senators, including New Jersey’s Cory Booker, Vermont’s Bernie Sanders, and Massachusetts’ Elizabeth Warren. Asked the Biden administration in a letter on Wednesday to utilise its authority to decriminalise marijuana.

See the full story here.

#cannabis#cannabisbanking#legalization#cannabisreform#cannabusiness#cannabisfinancing#cannabisfunding

Revolutionizing Cannabis: State Highlights & Latest Industry News!

Cannabis Industry News

Connecticut: Cannabis industry news, State marijuana regulators were inundated with more than 15,000 applications for retail recreational dispensaries before the May 4 deadline.

Cannabis Industry News

Florida:  Miami, the state’s second-largest city, with a population of 450,000, will finally allow its first medical cannabis dispensary.

Illinois:  A state judge lifted an August 2021 court order that stood in the way of 185 new business licenses being issued for recreational cannabis stores.

Louisiana:  State legislators passed a bill to expand the number of medical marijuana dispensaries from nine to 30.

Massachusetts:

Lawmakers in the Massachusetts House of Representatives joined their state. Senate colleagues in approving legislation to promote greater diversity in the state’s licensed cannabis industry.

Michigan:  The city of Detroit issued its first recreational marijuana business license.

Missouri: Cannabis industry news, A campaign working to legalize adult-use marijuana in Missouri. Has submitted almost 400,000 voter signatures to the state in support of a November ballot measure.

New Jersey:  In the first month of recreational cannabis, New Jersey retailers sold $24 million worth of adult-use products in the 13 state-licensed dispensaries.

New York:  The state Cannabis Control Board signed off on 16 conditional adult-use marijuana cultivation licenses. Along with a slew of proposed industry rules.

Ohio:  The state’s pharmacy board approved 70 provisional licenses, which could more than double the 58 dispensaries previously licensed.

South Dakota:  A group advocating to legalize adult-use cannabis, South Dakotans for Better Marijuana Laws. Turned in roughly 25,000 signatures to the office of the Secretary of State, which could be enough to get the issue on the November ballot.

Vermont:  Seven additional cannabis grow licenses were approved as the state increases suppliers for the recreational cannabis market that is expected to launch in October.

Contact Us today to discuss how we can support your business growth in this exciting industry

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Know Your Cannabis Business Overhead Ratio

The majority of cannabis business owners stress out about costs every day overhead ratio. This makes it challenging to invest additional money in the company to grow it.

How much overhead is too much?

That is a ruse of a question. Focus on overhead as a ratio, as a percentage of sales, rather than as an ideal, fixed monetary figure.

Check out this article in MJBiz Daily regarding calculating your overhead ratio here

overhead ratio

#mjbizdaily#cannabisbusiness#cannabisfinance#cannabisfunding#cannabisloans#cannabislending

Contact Us to get a quick cash infusion for your business!

The top 3 things to consider when investing in cannabis ETFs

The top 3 things to consider when investing in cannabis ETFs

The top 3 things to consider when investing in cannabis ETFs:

Cannabis stocks have been climbing since the November 2020 election in the United States, when more states approved legalizing recreational cannabis. That vote and the optimism that the federal government will finally relax restrictions on cannabis and make it lawful for recreational use nationwide have caused many investors to have high hopes for the industry’s future. Furthermore, many investors saw the cannabis industry’s recognition as an essential industry during the Covid-19 pandemic as a sign of good things to come for cannabis in Washington DC. The top 3 things to consider when investing in cannabis ETFs

As a result of the excellent press that cannabis is getting, many investors are rushing to add cannabis stocks to their portfolios this year. One of the cannabis securities that investors are rushing to is cannabis ETFs.

Numerous well-performing cannabis ETFs would satisfy the demands of many investors looking for significant gains in this volatile cannabis stock market. However, it is critical to exercise caution when entering the cannabis stock market because of the volatility. Therefore, we’ve put together some key points to assist you through the cannabis ETF marketplace.

investing in cannabis ETFs

What are cannabis ETFs?

ETFs or exchange-traded funds are funds with a collection of different stocks to minimize the downside risk for investors in the ETF. They are typically designed to track a specific index, like the S&P 500. This means that the ETF will generally behave the same way as the index it is tracking. If the index goes up, so does the ETFexisted

Although ETFs have been in existence for decades, the first marijuana ETF wasn’t established until last year. Horizons ETFs debuted on the Toronto Stock Exchange in April of 2017, tracking the performance of the North America Medical Marijuana index. This opened up a new, less-dangerous method to invest in cannabis etfs stocks, which we want to help you take advantage of. But before we geconsiderthere are a few things to think about.

What to consider when investing in cannabis ETFs?

investing in cannabis ETFs

1.       What index is the ETF tracking?

This is important to know before investing in cannabis ETFs. The index tha the ETF’s is tracking will determine bide and downside potential of the ETF. Furthermore, you should know the tracking difference between the ETF and the index it is tracking.

The tracking difference is the gap in performance between an ETF and the index it tracks. The trading and rebalancing expenses are generally to blame for this disparity. You may use the tracking difference as a metric to determine whether an ETF is performing well or not and whether its fees are too expensive.

Additionally, you should also know how frequently the ETF is rebalanced. Rebalancing is when the fund manager buys or sells stocks to maintain the desired weighting of the index. For example, if a particular stock in the index goes up in value, the fund manager may sell some of that stock to keep the index’s weighting constant.

The frequency of rebalancing will have an impact on both your returns as well as your costs. If an ETF is rebalanced more frequently, it will likely experience higher transaction costs. This will hurt your return, all other things being equal. You can find this information in the ETF’s prospectus.

2.       Actively managed ETF vs. passively managed ETF

The difference between recouping your investment and making a significant loss may be determined by whether or not a fund is actively managed. Actively managed funds employ humans to make decisions and execute trades, whereas passive funds utilize AI and trading bots to generate profits.

Passive funds tend to be less effective at minimizing losses than active funds. That’s because passive funds have trading cycles during which the fund’s asset composition cannot be changed. Even if significant losses are risked.

However, passive funds tend to have higher gains than active funds in the long term. This is because humans are not as good at making investment decisions as AI. Also, humans tend to buy and sell assets at the wrong time, incurring transaction costs that eat into returns.

So if you’re looking for immediate gains, an actively managed fund may be a better choice. However, if you’re aiming to maximize your profits in the long term, passive funds are generally a better investment.

3.       Percentage of junk stocks

It is not uncommon for funds with baskets of stocks to include some high performers and a bunch of underperformers that are there more for their fundamentals, which help spread out the risk more than they help make any gains. However, that is not to say that the junk assets couldn’t hurt you.

Remember the sub-prime mortgage loans that caused the recession in 2008? Those bad loans were mixed in with a few good ones, so investors and insurers couldn’t tell the difference. You have to know the balance in the ETF between the performers and the junk before investing in it.

Jason Spatafora, the co-founder of marijuana stocks.com, says, “Most of these ETFs will have a certain amount allocated to several companies where the top five marijuana stocks are good, but then there is a huge drop off in quality in the other stocks. Everything else is more risky.” This sums up the nature of most ETFs. They are a mix of good and bad investments hoping that the good will outweigh the bad.

ETFs can be a great way to invest in cannabis without picking individual stocks. However, there are a few things you should consider before investing in one. Specifically, you should look at the index that the ETF is tracking, the tracking difference, rebalancing frequency, the nature of the fund’s management, and the percentage of junk stocks. By taking these things into account, you will be able to decide which cannabis ETF is suitable for you.

Please contact us for more information on how to identify the right cannabis ETF for your portfolio.

 

Why the SAFE Banking Act is a SAFER bet in Congress

Why the SAFE Banking Act is a SAFER bet in Congress than the MORE Act

In a recent blog post, we talked about the MORE Act passing the House of Representatives and moving on to the Senate. And while we remain hopeful that the Senate will see the merits of the Act and deem it necessary for the cannabis industry. We are also apprehensive about its chances since cannabis legislation doesn’t ever make it through the Senate on the first try. However, we have reasons to believe that the SAFE Banking Act has more than half a chance of making it through the Senate.

Should it pass into law, the SAFE Banking Act would open the way for the financing of cannabis businesses by banks and also streamline the state and federal regulations concerning the funding of cannabis businesses.

What is the SAFE Banking Act of 2021?

The SAFE Banking Act of 2021 is a bill in the US Congress aimed at resolving the financing issues faced by legal, licensed cannabis companies as they try to raise capital. Because the federal government has fallen behind the states with its laws governing and regulating the cannabis industry, there are some discrepancies between the state legislation and federal law.

One of these discrepancies regards banks and the limitations to the amount of business they can do, with an industry considered illegal on a federal level. Banks are currently unable to offer financial services like credit and underwriting of credit instruments like bonds which are mainstream financing tools in other industries in the United States.

First introduced in 2017, then in 2019, and then again in 2021, the SAFE Banking Act would make it legal for banks to conduct financial services for cannabis companies, specifically, providing credit facilities. It would also provide a regulatory framework for banks to follow when doing business with cannabis companies, which is currently missing. This would ease the day-to-day liquidity concerns of the cannabis companies and solve the continuing existential crisis they face without access to financing.

In a press release issued by the House Committee on Financial Services on March 26, 2019, committee chairwoman Representative Maxine Waters (D-CA) remarked, the SAFE Banking Act “addresses an urgent public safety concern for legitimate businesses that currently have no recourse but to operate with just cash.”

However, the SAFE Banking Act has passed through the House of Representatives six times, and it has been defeated in the Senate five times. So why do we think that the sixth time will be any different?

Why is the SAFE Banking Act a safer bet than the MORE Act?

SAFE Banking Act

As Representative Maxine Waters stated in her remarks quoted above, the delay of the SAFE Banking Act has now become a public safety issue. Because banks won’t let cannabis dispensaries and other cannabis businesses open accounts, many businesses are forced to take payment in cash and store it on the premises. Unfortunately, this has resulted in several attacks on dispensary staff by armed robbers attempting to steal the cash and endangering the employees’ lives. Curaleaf’s CEO Boris Jordan recently echoed this sentiment in an interview with CNBC.

“We need some piece of legislation that will allow us to address the real problems in the cannabis industry today, and they are becoming real problems. People are now getting murdered in marijuana shops (for example) in Washington State last week and the week before in California… We need banking,” he said.

It is now clear that the lack of federal banking laws permitting banks to do business with cannabis businesses is having a tangible adverse effect on the safety of those businesses and their employees. Congress can no longer afford to sit around and watch while lives are at risk.

Furthermore, the MORE Act is considered too idealistic by many on Capitol Hill, which is the main reason it is likely to fail in the Senate. Congress is more likely to move slowly and evaluate each element of cannabis legislation individually.

According to Mr. Jordan, it is likely that the MORE Act, which is a legislative panacea for all that ails the cannabis industry, will fail. Instead, Congress is expected to pass separate legislation addressing the different issues of the cannabis industry individually. Starting with the finance and banking issues.

If this assessment is correct, we have enough reason to hope that the SAFE Banking Act will finally pass through the Senate and into law.

How would it impact the industry if it passes?

Why the SAFE Banking Act is a SAFER bet in Congress than the MORE Act

 

1.        Increased Liquidity

As mentioned above, access to liquidity is a big problem for cannabis companies. Most companies in the developed world rely on their cash at hand and other assets to facilitate the operating costs of running the business. And use credit from banks and other regulated lenders to expand and grow their businesses.

Cannabis companies struggle to finance operations and expansion activities with just the cash they are generating from sales. Furthermore, this lack of liquidity is a big turnoff for investors and partners alike who don’t want to take on the liquidity demands on their own.

2.        Increased Regulation

The passing of the SAFE Banking Act would also represent an increase in the regulation facing the cannabis industry, which is much needed for the industry. Because all the states have gone their way with their cannabis laws, there is no regulatory homologation across the different states. As a result, businesses find it hard to operate across the various states.

This increase in federal regulation would be welcome for businesses seeking to expand to other states because they will have a federal roadmap to follow. This saves many resources for companies that currently have to navigate each state like an individual country with its own rules.

3.   Increased security

As mentioned above, cannabis dispensaries need an alternative to storing large amounts of cash on the premises. Since this is attracting criminals and endangering the employees’ lives. The SAFE Banking Act would allow the dispensaries access to bank accounts to keep their money. And reduce the number of cash transactions happening at the store.

In addition to the reduced cash on-site, cannabis dispensaries. Will also not have to invest so heavily in security for the stores, reducing overhead costs.

As you can see, there’s a lot the industry stands to gain if the SAFE Banking Act is passed into law. Contact us for the latest information on the SAFE Banking Act and for more information on how your cannabis business or investment stands to benefit from it.

3 Must-haves when starting a cannabis dispensary business

cannabis dispensary business

As marijuana becomes more mainstream and public sentiment tends towards the positive regarding both recreational and medical use of the drug, more and more entrepreneurs are setting up the cannabis dispensary business. This trend has also been accelerated by the wave of legalization engulfing the United States. New York, Virginia, and New Mexico are just some of the most recent States to get swept up by the tide last year.

The cannabis industry is quickly becoming one of the major creators of new jobs in states where it is legal. In 2019, the cannabis industry employed over three hundred forty thousand Americans in various stages of the marijuana supply chain. The industry also contributed upwards of USD $13 billion to the national GDP. This was in 2019 when just a hand full of States had legalized the recreational consumption of cannabis. The numbers are much more significant now, with eighteen States having it officially legal and another dozen having it as a decriminalized substance.

cannabis dispensary business

As a result of those startling numbers, it is easy to understand why investors and entrepreneurs are diving headfirst into the cannabis industry. However, some things need to be in place in order to operate a successful cannabis startup that can grow into a large, publicly-traded multinational corporation.

In this article, we will highlight three primary ingredients that you need in your cannabis startup for it to succeed. We hope that this helps entrepreneurs ensure that these elements are all in place before opening their doors. Furthermore, having these in place will help you attract investors since investors always check for them before investing in a cannabis startup.

3 Must-haves when starting a cannabis dispensary business

1.        The necessary licenses

cannabis dispensary business

This is one of the most complicated barriers to starting a legal cannabis business in the United States. The requirements and number of licenses you have to get will vary depending on where you register your cannabis startup in the US. In addition, the body responsible for issuing the license will also depend on which state you are in.

In Nevada, for instance, the Department of Taxation is responsible for licensing and regulating both recreational and medical marijuana dispensaries. In California, startups can apply to either the Bureau of Cannabis Control, CalCannabis Cultivation Licensing or the Manufactured Cannabis Safety Branch. So, depending on which part of the supply chain you are in, you will need to go to one of the above to apply for the appropriate licenses in your state.

2.        A good branding and marketing strategy

cannabis dispensary business
cannabis dispensary business

Now that the cannabis business is being legalized across the United States, retailers and farmers no longer have to operate anonymously. Cannabis businesses now have to brand and market their products just like any other business.

Cannabis startups should also do due diligence on their consumers and profile their target markets. You must know where your consumers go for information on cannabis and establish yourself as a thought leader in those spaces. Running a cannabis business is no different from any other business. Your business needs to develop ways to engage its users, generate qualified leads and convert those leads into sales.

3.        A financial backer

Lastly, cannabis businesses need solid financial partners and investors from the start. Unfortunately, due to cannabis not being legal on a federal level in the United States, many banks are limited in the financial support and liquidity they can offer cannabis businesses. This means that for a cannabis business to succeed, it needs financial partners that are ready to provide the necessary liquidity to get it off the ground.

Prioritizing debt financing allows business owners to retain equity and control over their operations.

Bonus: Location! Location! Location!

Every successful cannabis dispensary has a good location from which to do business. This is one of the general laws of retail trade. Location is everything. However, it might be more critical for cannabis dispensaries than regular retail businesses.

With regional zoning laws and the regulations governing cannabis retail in each state, cannabis businesses cannot operate everywhere that other businesses can. For example, in certain States, cannabis dispensaries are not allowed to operate close to schools, rehab centers and even churches. This makes it even more vital that you find the right location.

And in this case, the right location is where you will have the most traffic and where you are legally allowed to set up as per your state’s laws.

This is our list of the three most important things that have to be in place in order for a cannabis startup to succeed. Make sure you have all of them before diving into the cannabis industry, either as an entrepreneur or an investor. Contact us today for help starting your cannabis dispensary.

 

Why American Cannabis Investors Are Paying Attention to Israel

American Cannabis Investors

As the Cannabis industry takes off in earnest. North American cannabis, investors are scrambling to choose between the available stocks in both the United States and Canada in a bid to enter the market before it takes off.

However, it is essential to remember that the cannabis industry is global, just like many others, and players are entering the field from all corners of the planet. And while several restrictions still exist against growing, distributing, and retailing of both medical and recreational cannabis in North America, particularly the United States, many other countries, particularly in Europe and the Middle East, are positioning themselves to hit the ground running when the legalization campaign goes global.

One such country is Israel. In the last few years, the cannabis industry in Israel has recorded several significant wins both in the legislature and in the market. While the Tel Aviv stock market has been up and down on cannabis stocks for a while now, a steady upward trend is beginning to emerge, with several new developments coming up. This article will highlight three significant developments in the Israeli cannabis industry that should make all investors sit and pay attention, lest they miss out on a big cannabis play.

3 major developments in Israel’s cannabis industry

American Cannabis Investors

1.        Israel has become the number 1 importer of cannabis

In July 2020, Israel overtook Germany as the biggest importer of cannabis in the world. The two countries are slated to be the only importers of over a metric ton of cannabis annually outside of North America.

Israel was able to achieve this by signing several lucrative agreements with grower nations that allow them to import cannabis at a more or less stable price, regardless of the prevailing market conditions. One such deal was made with Uganda, which supplied Israel with 250kgs of cannabis in 2020.

The deal with Uganda is expected to last several years, with output scaling up as both countries are expected to invest more in the agreement. Furthermore, it is believed that Israel also has a local presence in Uganda, which is how it is able to guarantee supply from Uganda even during the middle of a global pandemic. Together Pharma, which is a publicly-traded Israeli cannabis business, has a partnership with Ugandan-based Industrial Hemp Uganda Limited, which serves as their boots on the ground.

2.        Medical marijuana patients sore

American Cannabis Investors

Another significant development in Israel’s cannabis industry is the growth in the number of authorized medical marijuana patients in the country. Authorized medical marijuana patients in Israel have more than doubled in the last two years, crossing the seventy-thousand-patient mark in the middle of 2020.

This number is mainly due to the growth of research into the medical properties and benefits of cannabis being done in Israel. And unlike the United States, the companies doing the research can rely on the government for policy support and pharmaceutical companies to partner with them to produce drugs and therapies at the required scale in Israel.

So while seventy thousand patients is a relatively small number, the drugs being produced will make Israel competitive on the global stage when the legalization of medical marijuana goes global.

3.        The process to legalize cannabis exports has begun

 

And lastly, Israel’s political class has already started making moves to see the export of cannabis legalized within the next two years. While the country’s local market expands, as seen above with the growth of medical marijuana patients, Israel is also positioning itself to be an exporter of medical marijuana products to the rest of the world.

In May of 2020, Israeli regulators awarded temporary export licenses to a handful of cannabis companies in a bid to test the export model and decide whether or not to make it permanent, depending on the outcomes and challenges faced. The companies that were awarded the temporary licenses to export include;

  • Search Medical Group (TASE: SEMG)
  • Intercure (OTC: IRCLF, TASE: INCR) subsidiary Canndoc
  • Panaxia Labs (TASE PNAX)
  • Together Pharma (TASE: TGTR)
  • Tikun Olam (TASE: TKUN)
  • Univo Pharmaceutical (TASE: UNVO)

All six companies awarded are publicly traded on the Tel Aviv Stock Exchange. As you can see, the cannabis industry is not just heating up in North America alone but in other countries too. These countries are also developing their own rules and procedures and creating their own opportunities for investors to inject capital and make returns. Disregard them at your own risk.

As the cannabis industry grows globally, many American cannabis investors are already looking to diversify their holdings by investing in different countries. Israel represents such an opportunity for American investors to diversify and minimize the risk in the US cannabis market.

Contact us today if you are interested in diversifying your cannabis stock portfolio and more information on how you can enter the Israeli cannabis industry. You will not regret it.

5 Top Tips to Maximize your Dispensary Sales on 4/20 and Beyond

Dispensary Sales

April 20th is upon us, and this is a time to celebrate cannabis culture because, for the initiated, 4/20 is a ‘holiday’ dedicated to cannabis. It is the day that cannabis users worldwide celebrate cannabis and the culture that it has given us. People get together to partake in various cannabis products, and for you as a business owner, this is a day for you to maximize your dispensary sales and grow your customer base in the process. Think of it as the cannabis Black Friday.

According to a recent cannabis sales report, sales of cannabis during the week of April 20th almost doubled in 2021 from 2018. Cannabis sales in the week of 4/20 went from about 88 million dollars in 2018 to about 175 million dollars in 2021. This increase in sales happened in 2021 despite the Covid-19 pandemic hindering sales and consumption of cannabis across the country. That would suggest that 4/20 sales will be even bigger this year since many of the Covid-19 restrictions have been lifted.

Furthermore, in addition to lifting the Covid-19 restrictions, cannabis legalization efforts and public sentiment have improved a great deal since 2018, so one would expect the sales this year to be astronomical.

However, as a cannabis dispensary owner, you can’t afford to simply sit back and wait to make a killing on 4/20. Instead, you have to devise a strategy and take deliberate steps to ensure you maximize your 4/20 sales this year. This article highlights five tips that will help you maximize your dispensary sales this 4/20.

Dispensary Sales

1.   Stock up early and intelligently

Running out of stock on 4/20 is akin to brand suicide among cannabis dispensaries. Not only will it send your customers to your competitors, but it will also lead to negative reviews and sentiments among consumers, which will affect your business even after 4/20 is done.

To avoid such a disaster, you need to have your 4/20 stock in inventory well before the day itself. This helps you plan your marketing materials and display materials ahead of time. You may also want to print a special menu for 4/20 highlighting all the products you have in stock.

Additionally, you should ensure that you stock intelligently. Use your historical sales data to know the consumers’ favorite products and have those stocked in excess because those will be flying off the shelves.

2.   Prioritize female cannabis consumers

While there are more male recreational cannabis consumers than females, female cannabis consumers tend to celebrate 4/20 more than their male counterparts. According to a recent consumer spending report, 47% of female cannabis consumers plan to partake in dispensary deals on 4/20, while only 33% of their male counterparts do. Furthermore, female consumers are 13% more likely to celebrate 4/20 than male consumers.

This is a good reason for you to make room for female consumers on 4/20. Target them with your marketing content and stock some of their favorite products. You could also offer a discount to female consumers in your marketing content to ensure that they celebrate at your store.

3.   Deploy your entire staff on 4/20

You need all hands on deck on 4/20, so it is essential to ensure that your staff is all available to you on the day. This means sending out a revised shift schedule well in advance and ensuring that your team is prepped and ready for the overwhelming sales activity that comes with the day.

On top of ensuring that they are all available, you should refresh them on the available products, their effects and benefits because that will get them to make more sales, and the sales process will go by much more smoothly.

Since you will likely be open till late on 4/20, you should clear all your staff for overtime work and give them a favorable rate for overtime.

4.   Give discounts and offers on less popular products

Like Black Friday for retail stores, 4/20 offers cannabis dispensaries the opportunity to clear slow-moving inventory. One of the best ways to do this is to give offers and discounts on these products. That will make them more attractive to consumers and clear room for new merchandise in your stores.

Another strategy you could use is to give out coupons for discounts on these products for purchase after 4/20. This could help you convert one-time 4/20 customers into regulars since they will keep coming back to redeem their coupons.

5.   Give your customers a party.

Waiting in line on 4/20 can be one of the most boring activities of the day. Many dispensaries report that they lose many customers because of the long lines and the wait times. These customers most likely won’t return to the store even after 4/20.

One of the best strategies to keep customers occupied during the wait on 4/20 is to throw a 4/20 party in the store. For instance, you could set up a DJ booth and have music playing. You can also hire a food truck and offer refreshments to ensure that customers don’t get hungry and leave to get food since they most likely won’t return.

Finally, you can give out goodie bags with coupons, t-shirts, wristbands and other branded memorabilia that will help you retain those customers even after 3/20.

That is our list of the top five tips you can follow to maximize your dispensary sales on 4/20. Are you interested in learning more? Contact us today for more information on maximizing sales in your dispensary even after 4/20.

How the Passed MORE Act Could Transform Your Cannabis Business

cannabis business

If you have been following cannabis business news coming out of Washington this past week, then you will be aware of the fact that the House of Representatives just passed the Marijuana Opportunity Reinvestment and Expungement (MORE) Act. However, if you have been following the progress of the cannabis business and bills in Congress, you know better than to pop the champagne.

Cannabis bills of recent years like the SAFE Banking Act have managed to pass in the House of Representatives with ease but have not been able to make it passed the Senate floor. The SAFE Banking Act, for example, has been passed by the House of Representatives six times but has failed to become law because it has been shut down in the Senate every time.

So while you do have obvious reasons to take this news with cautious optimism, the passing of the MORE Act in the House of Representatives does have some benefits for your cannabis business, however slim those might be. Let us begin by explaining what the MORE Act is about.

cannabis business

What is the MORE Act?

The Marijuana Opportunity Reinvestment and Expungement Act, or the MORE Act, was introduced in the House of Representatives by Representative Jerrold Nadler back in 2021. The prime directive of the bill was the decriminalization of cannabis.

More specifically, if passed, the MORE Act would remove marijuana from the list of Schedule 1 narcotics that it has been on since 1970 when the Controlled Substances Act was passed. For context, the other drugs on the Schedule 1 list of narcotics include cocaine, heroin, and LSD.

With the MORE Act, possession, growing, and retail sales of cannabis would be legal across the United States on a federal level. Which means that cannabis businesses and consumers could operate just like all other businesses making legal products. Some of the main objectives of the

MORE Act includes;

  • Replaces statutory references to marijuana and marijuana with cannabis.
  • The Bureau of Labor Statistics must regularly publish demographic data on cannabis business owners and employees.
  • Establishes a trust fund to support various programs and services for individuals and businesses in communities impacted by the war on drugs.
  • Imposes an excise tax on cannabis products produced in or imported into the United States and an occupational tax on cannabis production facilities and export warehouses.
  • Entities that are cannabis-related legitimate businesses or service providers have made Small Business Administration loans and services available to them.
  • Prohibits the denial of federal public benefits to a person based on certain cannabis-related conduct or convictions.
  • Prohibits the denial of benefits and protections under immigration laws based on cannabis-related conduct or a conviction.
  • Establishes a process to expunge convictions and conduct sentencing review hearings related to federal cannabis offenses.
  • Directs the Government Accountability Office to study the societal impact of state legalization of recreational cannabis.
  • Instruct the National Highway Traffic Safety Administration to study methods for determining whether a driver is impaired by marijuana.
  • Given direction to  the National Institute for Occupational Safety and Health to study the impact of state legalization of recreational cannabis on the workplace.
  • Directs the Department of Education to study the impact of state legalization of recreational cannabis on schools and school-aged children.

As you can see from this list, The MORE Act’s objectives focus on rectifying historical injustices against marginalized communities. Bill aims to study recreational cannabis’s impact on road safety, workplace productivity, and schools, fostering informed decision-making.

If the Senate passes it, this would represent a monumental shift in US federal policy. Due to which cannabis which would finally get it on the same wavelength as the public sentiment.

What the MORE Act would mean for your cannabis business

Removal of stigma

Cannabis businesses and consumers suffer considerable social stigma from communities and people who associate cannabis with criminal and degenerate behavior. This stigma has affected many cannabis businesses in multiple ways. Which including being denied access to certain rental properties and locations in town.

Increased access to financing

Cannabis financing is one of the most challenging things to access when operating a cannabis business. Banks and other regulated financial institutions are reluctant to provide funding for cannabis businesses. Penalties can be imposed on them for engaging in business with entities not legalized under federal law.

This makes it hard for cannabis businesses to manage their cash flows and grow. With the MORE Act, cannabis businesses will be able to access small business loans and financial services.

Access to federal benefits

Despite cannabis businesses being illegal on a federal level, taxes were still expected to be paid by them. However, they were denied federal benefits associated with tax payments, including deductions, subsidies, and exemptions.  Significantly reducing available profits for such businesses. However, that would all change with the MORE Act, as cannabis businesses would finally become legal on a federal level.

Contact us for more information on how the MORE Act will benefit your business and how you can access financing and credit solutions for your cannabis business today.

Honoring Women in Cannabis for International Women’s Day

Women in Cannabis

Honoring Women in Cannabis for International Women’s Day

According to Kyra Reed, Founder & CEO of Women Employed in Cannabis, the number of women working in the cannabis industry is going down.  This has devastating consequences for the industry as a whole.  Read the entire article here

#internationalwomensday@womenincannabis@cannabisqueens#cannabisbusiness@cannabiswomen