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Cannabis and Real Estate – The All-Inclusive Guide

The legal cannabis industry started attracting big money during the “second wave of decriminalization.” During the early 2000s, several states decriminalized cannabis possessions for personal use. The plant hadn’t become legal, but savvy entrepreneurs could see the tide changing.

By 2012, two states (Colorado and Washington) legalized recreational cannabis. By 2020, 11 states and Washington, DC, had made it legal to sell and possess medical and recreational cannabis. Businesses selling cannabis have to follow strict guidelines, but everyone from consumers to state governments benefits from looser laws governing marijuana sales.

Many states are still pushing to pass laws that will allow the sale of recreational marijuana. For many people, nationwide legalization looks like an inevitability. It may have to happen state by state, but eventually, all adults 21 and over will have access to legal, safe cannabis for medicinal and personal use.

The room for growth has fueled much of the interest in cannabis as an industry. Smart investors know that they will make the most money by entering an emerging industry early and riding the growth to profits. The fact that plenty of states still don’t allow cannabis sales could actually encourage more people to invest in the industry. Right now, it looks like there’s unlimited room for growth. Who wouldn’t want a piece of that?

COVID quarantines make cannabis real estate even more attractive as states deem cannabis an essential business. Cannabis has become so critical to the health of individuals and economies that states like California, Colorado, and Illinois allowed delivery and curbside sales.

Legal Cannabis Has Had a Remarkable Impact on Real Estate

It’s not surprising that so many companies have entered the legal cannabis industry. Growth, however, has made some unexpected changes. Certain types of real estate, for example, have become significantly more valuable as places to grow crops and distribute products through storefronts.

The Jump in Urban and Suburban Real Estate Values

Typically, old, cinderblock warehouses don’t attract much attention from potential buyers. The building might work as a storage facility, but not much else. Until that is, a state legalizes cannabis. Suddenly, that old warehouse on the edge of town looks quite appealing. With a little retrofitting, a burgeoning cannabis company can turn it into a grow operation that produces hundreds of pounds of cannabis.

In 2017, the New York Times described how marijuana was affecting real estate prices around the country. The article described old gardening centers and warehouses recently turned into high-security grow operations. Some of the money to fund these new operations came from individual entrepreneurs. A lot of the cash came from Wall Street, though. When real estate companies start raking in money, traders on the New York Stock Exchange take notice.

As more property owners realized that they could turn their urban and suburban buildings into indoor farms, they started charging higher prices for rent. In Denver, the price for warehouse space grew by more than 50% over 5 years. Amazingly, Denver had more cannabis stores that Starbucks coffee shops.

While some municipalities in states with legal cannabis have rejected licenses for stores to operate, most neighborhoods welcome dispensaries that keep a low profile and follow the law. After all, two-thirds of Americans support marijuana legalization. To a lot of people, a new dispensary doesn’t seem that much different than a new liquor store. It’s just another opportunity for the community to thrive from the success of local businesses.

Since property owners realize that they can charge cannabis companies higher prices, dispensaries have to charge slightly more for their products. The prices tend to come down a bit over time, though.

When an area first introduces legal cannabis to consumers, businesses get rushed by people curious to learn about their options. It doesn’t take long for the novelty to wear off. Once that happens, growers and sellers can make accurate decisions about how much product they need. Even when prices remain higher than black market cannabis, many consumers are willing to spend extra money to know that they’re getting reliable products from local sources.

The Rural Boom for Cannabis Real Estate

Growing cannabis indoors has several advantages. Cultivators can grow more crops because they have control over factors like moisture, temperature, lighting, and fertilizers. A rainy or dry season won’t stop them from producing a full crop of profitable cannabis.

Still, sellers can charge a premium for cannabis grown outdoors. Some consumers say that they enjoy the smell and flavor of outdoor cannabis more than cannabis grown inside carefully-controlled warehouses.

Plus, farmers around the country are looking for cash crops. Kentucky makes an excellent example. The state’s farmers once relied on tobacco as a top earner. As the number of smokers falls, though, tobacco has lost much of its appeal as a crop. Mitch McConnell played a key role in passing legislation that legalized hemp production. Part of his motivation was to provide a new cash crop for agricultural areas of his state.

Kentucky farmers still cannot grow marijuana, but other states’ farmers have benefited. As a result, owning farmland in places like Oregon and California has become a way to generate significant income.

Cannabis Real Estate Must Meet Strict Regulations

Looser laws mean that more companies can cultivate and sell cannabis products to adults 21 years and older, but businesses still have to follow strict regulations.

Buying or renting cannabis real estate quickly becomes confusing for new entrepreneurs because the laws vary so much from location to location. Even within a state, each city can establish unique rules that influence tax rates, advertising options, security requirements, and licensing.

A look at three cities in Southern California shows how much rules can vary within just 100 miles. Keep in mind that the state of California charges a 15% tax for cannabis cultivation and consumer sales (meaning that farmers selling to dispensaries and consumers buying from dispensaries have to pay). The taxes listed for each city are in addition to the state tax.

Desert Hot Springs, CA

Desert Hot Springs considers cannabis a vital part of its economy. The city, which is about 1.5 hours outside of Los Angeles, has plenty of room for cannabis cultivation.

Desert Hot Springs charges 10% for all cannabis sales. It gets more complicated for cultivators, though.

Farmers pay $22.50 twice a year per square foot of cultivation up to 3,000 square feet. Cultivation over the 3,000 square feet costs $10.20 per square foot, again twice per year. A -farmer cultivating 3,000 square feet would pay the city $153,000 over the year.

All cultivators and dispensaries in Desert Hot Springs must get licensed by the State of California. Additionally all cultivation facilities must be located in the city’s Light Industrial Zoning District. Dispensaries can only operate in Commercial Zoning Districts, which essentially means that few cannabis storefronts exist close to residential neighborhoods.

Los Angeles, CA

Los Angeles has a slightly less confusing tax system. According to the Los Angeles Office of Finance:

  • Medical cannabis sales carry a 5% tax
  • Recreational cannabis has a 10% tax rate
  • Cannabis cultivators pay a 20% rate

Cannabis dispensaries in LA also have to follow regulations to maintain their licenses. For instance, medical and recreational stores must:

  • Pay a $5,000 bond to the State of California
  • Employ at least one security guard during business hours.
  • Only operate in jurisdictions that give them permission.
  • Avoid advertising within 1,000 feet of a school, daycare, playground, or youth center.

It’s important to remember that there’s a difference between Los Angeles County and Los Angeles. Unincorporated areas of Los Angeles County can establish their own rules. Anyone who wants to purchase, rent, or sell cannabis real estate in unincorporated areas should reach out to the local government for guidance.

Long Beach, CA

Long Beach has a straightforward taxing system that charges 10.25% on top of the state tax. That makes purchasing cannabis rather easy and affordable.

Entrepreneurs need to consider other factors when buying, selling, or renting real estate for cannabis use. For instance, Long Beach forbids outdoor cannabis cultivation. No company can legally grow marijuana unless it has an indoor facility that can support the plants.

Additionally:

  • No medical cannabis retail store can have a location within 1,000 feet of an existing cannabis dispensary.
  • Companies must have independent laboratories test their cannabis for pesticides and contaminants.
  • Dispensaries cannot operate within 1,000 feet of a school, daycare center, playground, or youth center.

Long Beach does have a Cannabis Social Equity Program that helps budding entrepreneurs access the funds they need to start businesses.

Getting Information About Cannabis Property Listings

Obviously, entrepreneurs have to consider a lot of factors when purchasing cannabis real estate. The long list of rules can make it challenging for people. It certainly doesn’t help that each state and city can set its own laws. Even small changes from city to city can affect the success of a cannabis farm or dispensary.

Currently, federal banking laws add a thick layer of complexity and uncertainty to investors that want to support the cannabis industry. Banks worry about extending lines of credit to cannabis businesses. Property owners may also worry about leasing or selling real estate to businesses in the cannabis industry. If legalized, those uncertainties would largely evaporate and the owners of cannabis real estate would see a huge spike in their property values.

At least six states (Arizona, Arkansas, Florida, Missouri, New Jersey, and South Dakota) are trying to expand cannabis legalization during 2020. Some of those states probably won’t succeed in 2020. By 2024, though, two-fifths of the U.S. will likely have laws that allow the sale of recreational marijuana. That would increase the number of states with recreational cannabis from 11 to 20 within a few years. It’s practically impossible to overestimate the opportunity that these legal changes will make within in the real estate and cannabis industries.

The good news is that no one has to go into the cannabis industry without help from experienced professionals.

420property.com is the best place for cannabis real estate. You can use the website to research cannabis farmland for sale, cannabis businesses for sale, and properties that you can use to cultivate cannabis. In this case, the word “cannabis” applies to CBD hemp and THC marijuana. The state that you want to operate may have laws that make hemp more feasible than marijuana. Regardless, 420property.com can help you find the right real estate for your project.

If you already own cannabis real estate, you can list the property on 420property.com. It’s the right place to find serious investors who want to make money using your real estate to grow or sell cannabis.

You can also use 420property.com to:

  • Connect with appraisers, business consultants, real estate agents, and lawyers.
  • Find investment opportunities in the cannabis industry.
  • Get financing to fund commercial real estate, equipment, and capital.
  • Compare your insurance options to make sure you have policies for crop failure, workers’ compensation, general liability, product liability, product recalls, and equipment failure.
  • Advertise your cannabis real estate listings to find an option within your price range.

The cannabis industry stands to grow quickly over the next decade. Investors that purchase real estate now stand to earn the most money. Whether you want to buy cannabis real estate that’s right for your business plan or you need to sell a piece of land to someone willing to pay its true value, 420property.com has the features to put you on the right path to success.

June 2, 2020 / by / in
Selling a Cannabis Business – Things to Consider

Selling a cannabis business can generate significant profits that fund future companies or help entrepreneurs find financial freedom. Like selling any type of business, though, owners need to consider several factors before they even start to approach potential buyers.

The following guide will help anyone selling a cannabis business make smart choices that lead to a smooth transaction and tidy profits.

Evaluate the Value Before You Sell a Cannabis Business

The value of cannabis businesses can vary significantly. A successful dispensary may earn strong profits without having exceptional value. Before anyone can sell a cannabis business, it makes sense to evaluate all of the company’s profit potential and the value of its assets.

The Value of Assets

A cannabis business’s assets may include:

  • Products currently in stock, such as cannabis flowers, tinctures, and edibles.
  • Equipment used to make cannabis concentrates.
  • Farmland used to grow cannabis, hemp, and related products.
  • Buildings, such as storefronts, warehouses, and barns.
  • Computers and software that track inventory, invoices, receipts, and how many hours employees work.
  • Items required by states, such as identification card readers and security systems.

Every asset counts, so make sure they all get included in the business’s valuation.

The Value of Current and Future Sales

A cannabis business’s value doesn’t end with the assets that it owns, though. It’s essential to consider the company’s earning potential. When selling a cannabis business with a price-to-earnings ratio of 15 and a projected earning of $500,000, the company could have a value near $7.5 million.

Sellers should consider meeting with valuation professionals to determine how much their businesses are really worth. Ideally, someone with a background in accounting and business should review the company’s projected revenues and debts.

The Value of a Cannabis Business’s Brand Identity

A cannabis business’s brand also has value. If the company has a reputation for providing excellent products and professional services, it has more value than a business with a negative reputation. That needs to be considered when selling a well-known company in any industry.

Gather Proof of Ownership and Licensing

No matter where a business operates, the owner or owners must have documentation. When it comes to selling a cannabis business, owners also need to gather all of the licensing that proves they meet local guidelines.

States have unique licensing requirements. Regardless of location, though, cannabis and hemp businesses must follow strict regulations. Falling short of those regulations can lead to fines and even prosecution.

All potential buyers will want to see the documentation that proves ownership and licensing. Without those documents, it’s too risky for them to take steps toward purchasing the company.

Update Revenue and Expense Documents

Before selling a cannabis business, owners need to collect books and records that show the company’s financial success. No one will take the current owner’s word for it. Update all revenue and expense documents now so interested parties can see the numbers.

Financial records should detail how the business is functioning. It’s not enough to show receipts that say the company had $100,000 in revenue last quarter. Buyers will also need to know things like how much the business spends on:

  • Operational costs (utilities, rent, etc.)
  • Marketing and advertising (including costs connected to website maintenance and content creation)
  • Labor (how much employees get paid in money and benefits)
  • Taxes (including local, state, and payroll taxes)
  • Insurance (policies for your real estate, professional liability, vehicles, workers’ compensation, business interruption, etc.)
  • Payment processing (credit cards, for instance, charge retailers a percentage of their sales)

Expenses, in other words, can add up quickly. That’s why revenue and expense reports are some of the first things that potential buyers will ask for. Without those documents, no one will think twice about purchasing the cannabis company. They will move on to look for an option that conforms to their expectations.

Communicate With Other Stakeholders in Your Business

Cannabis businesses often have multiple stakeholders who need to make decisions together. In some cases, two people might co-own a dispensary or farm. In other situations, dozens or hundreds of people might own stock in the company.

Granted, not every stockholder needs to know about a potential sale. Anyone with significant ownership, however, will need to be consulted. Otherwise, that person could cease negotiations and raise complaints.

The best option is to discuss selling with all stakeholders well before preparing the cannabis business for sale. That way, everyone is on the same page about factors such as the business’s value and how much they expect to profit.

It May Take Time to Get the Right Deal for a Cannabis Business

The cannabis and hemp industries have grown incredibly fast over the last few years. As more states legalize medical and recreational sales, the industry will keep growing.

What does this mean for people trying to sell a cannabis business? In part, it means that they should be willing to wait until they get the right deal. Interested parties may approach owners with low-ball offers or unrealistic expectations about what they will get for their money.

The willingness to wait several months or even a couple of years for the right buyer to come along and finalize a deal could be the difference between making a lot of money and losing a lot of money.

Conclusion

In conclusion, cannabis business owners should recognize that they have a lot of opportunities to grow. It often helps to get advice from a professional who has helped broker several deals. Knowing how to build a business isn’t the same as knowing how to sell one to a reliable buyer. You may even need assistance from real estate agents, appraisers, lawyers, and business consultants. Don’t rush into a sale. Take some time to make a wise decision that rewards the hard work of building a business from the ground up.

May 21, 2020 / by / in
Cannabis Business Proving Itself Pandemic and Recession-Proof

Near the end of January 2020, the United States officially entered the longest period of economic growth in the country’s history. Growth had slowed significantly by 2020, but the economy still showed signs of moving forward. At the time, it seemed like nothing could stand in its way. On the other side of the globe, though, cases of COVID-19 started to spread beyond the borders of Wuhan, China. No one knew it, but COVID-19 was coming for the U.S. and world economies in a big way.

Now that the U.S. has gone from growth to recession at breakneck speed, entrepreneurs and investors want to find opportunities that will help them earn strong returns despite the mounting damage of a global pandemic. The cannabis industry stands out as one of the best options as it proves itself pandemic and recession-proof.

Cannabis Sales Increase Even as the Economy Stumbles

Slowing the progress of COVID-19 means that people need to isolate themselves and stay at home. As a result, service industries came to a sudden halt. Restaurants, hotels, and movie theaters shut their doors during March because they didn’t have any customers. As more businesses layoff workers, unemployment claims have skyrocketed. The Department of Labor reports that in March 2019, about 1.7 million people applied for unemployment. In March 2020, the number of filers exceeded 3 million.

The slowing economy and job loss haven’t hurt the cannabis industry, though. In fact, recreational cannabis sales rose by 50% between March 16 and 22. Compared to March of 2019, medicinal marijuana sales grew 41% by the end of March 2020.

Analysts say that sales in Oregon, a state that allows medicinal and recreational sales, increased by 75% while the price of the average order grew by more than $10. In California, dispensaries say that the number of first-time buyers has jumped 50%.

Why the Cannabis Industry Can Grow During a Recession and Pandemic

A few key factors make cannabis industries pandemic and recession-proof.

First, economic uncertainty creates a lot of anxiety in people. Jobs that seemed secure a month ago have evaporated. Whether currently employed or not, people don’t know how long they will keep receiving paychecks. Using cannabis helps many of those people control their anxiety so they can focus on staying safe and sane during isolation. Others use marijuana to cope with symptoms of depression that often increase when they can’t socialize.

Second, people get bored quickly. Even with countless movies, songs, and games to access online, humans crave social interaction and novelty. Dispensaries in California may have seen an increase in first-time buyers because people who don’t typically use cannabis are seeking novelty.

Consuming marijuana also improves sound perception. Listening to music under the influence of cannabis can create euphoric feelings. People need the escape of euphoria most when they feel like everything else in the world has gone wrong.

Third, many states and cities have decided that cannabis distributors are essential businesses that aren’t held subject to government orders to close. California Governor Gavin Newsom announced on March 19 that cannabis distributors with medicinal licenses were considered essential. Unlike bookstores, clothing stores, and bars, dispensaries did not have to close their doors to customers.

The decision to include cannabis dispensaries as essential businesses means that companies can continue making money during the pandemic. Since consumers have fewer places to spend money, it makes sense that more of them will head to their local stores to purchase cannabis products.

Cannabis Has Replaced Alcohol for Many Consumers

During the Great Recession that lasted from December 2007 to June 2009, alcohol sales grew. As people lost their jobs, they turned to alcohol to cope with the situation.

Stores will continue to sell alcohol during the worldwide downturn caused by COVID-19. Most states list liquor stores as essential businesses. Consumption trends have evolved a lot over the last decade, though. Today, a lot of people who enjoy cannabis say that they don’t consume much alcohol.

Millennials are fueling the trend away from alcohol and toward cannabis. Many Millennial consumers say that they don’t get much enjoyment from drinking alcohol. They also complain that alcohol costs a lot of money. Spending one evening drinking at a bar can easily cost $30. Plus, plenty of cannabis users say that they prefer marijuana because it doesn’t give them hangovers like alcohol does.

Cannabis gives consumers a cheaper, more enjoyable experience than alcohol. Some companies that understand this trend have already started investing in cannabis-based drinks that offer a buzz without the booze.

The Cannabis Industry Has Ample Opportunities to Grow During a Recession

Most states have some level of cannabis legalization. The industry, though, has ample opportunities to grow during a recession. As of 2020, only 11 states have fully legalized marijuana for adults over 21. Thirty-three states have medicinal marijuana.

During a recession, states will need to find new sources of revenue. States that have been close to legalizing cannabis, such as California and New Jersey, might get the nudge they need to follow through during the 2020 and 2021 elections.

Within two years of full legalization, California collected more than $1 billion in cannabis tax revenue. As states realize the financial burden caused by unemployment, closed businesses, and slowed travel, they cannot afford to ignore the benefits of passing laws that favor the cannabis industry.

Cannabis businesses already have a lot of ways to earn profits. The pandemic and recession may prove that people need the relief, jobs, and taxes that the cannabis industry can offer.

April 4, 2020 / by / in
2020 Elections, Cannabis, and Increased Demand for Cannabis Real Estate

Regardless of their political party, the majority of Americans support cannabis legalization. According to a 2019 Pew Research Center survey, 55% of Republicans and 78% of Democrats agreed that marijuana “should be made legal.” Overall, 67% of Americans want to see cannabis legalized. Only 32% think that cannabis “should not be made legal.”

The American public’s evolving position on cannabis legalization could have significant ramifications for 2020 state electrons and the demand for cannabis real estate.

The Effect of Cannabis Legalization on Real Estate

When Americans consider the effects of cannabis legalization, they rarely think about whether updating laws will raise or lower real estate values. Cannabis entrepreneurs, however, need to take changes in cannabis real estate seriously. Deciding when to purchase land and buildings could partially determine whether companies succeed or fail.

Colorado, one of the first states to legalize recreational cannabis, offers an excellent case study that could predict how changing laws affect real estate prices.

One study finds that Colorado’s decision to legalize marijuana helped increase home values by 6%, which comes to about $15,600 per property. Legalization may contribute to higher values because it creates a new industry and jobs, attracts job seekers, and encourages investors to spend money on property.

Interestingly, areas that legalize medical marijuana do not see such a significant jump in property values as those that legalize recreational cannabis.

How Legalization May Influence Cannabis Real Estate Investors

Considering that property values increase after legalization, it makes sense for cannabis real estate investors to purchase land and buildings before states change their laws. A storefront that costs $250,000 before legalization could easily reach $265,000 after legalization.

Unfortunately, researchers haven’t spent as much time studying the impact of cannabis legalization on farmland. One could assume, though, that farm prices will go up as more investors purchase land for growing cannabis.

2020 State Elections That May Lead to Cannabis Legalization

Cannabis investors should pay close attention to 2020 state elections that will affect cannabis legalization. The closer a state comes to recreational legalization, the more expensive property will probably become.

Every investor will need to gauge the landscape to determine the right time to buy land and pour money into the equipment, infrastructure, and employees. Paying attention to 2020 state elections may play a crucial role in when entrepreneurs decide to invest.

States That May Pass Medical Cannabis Laws in 2020

So far, medical marijuana hasn’t had much of an influence on real estate prices. States that pass medical cannabis laws, though, have taken a first step toward full legalization. Once they find that medical use benefits people more than harms them, it becomes easier to make recreational cannabis easier.

Idaho

Regions with recreational cannabis surround Idaho. The state’s government has resisted pressure to conform to its neighbors’ laws.

The 2020 election, however, may include a ballot initiative that would let Idaho residents decide whether they want to legalize medical marijuana.

Kansas

As of March 2020, Kansas has some of the country’s strictest marijuana laws. Governor Laura Kelly, who took office in 2019, supports medical cannabis, though. Kansas’s Senate and House have Republican leaders who do not support the governor on her position. This creates a tense situation that could influence how people choose to vote in 2020.

Kansas has been put in an odd position, geographically. It shares borders with Colorado, which has fully legalized cannabis; Missouri, which has medical cannabis and decriminalized recreational use; Oklahoma, where patients can access medical marijuana but authorities can prosecute recreational users; and Nebraska, which has decriminalized personal cannabis use even though it does not have medical marijuana.

Mississippi

Mississippi’s cannabis advocates are encouraging residents to support a ballot initiative that would let them, the voters, decide whether the state adopts medical marijuana. Note that winning would not legalize medical marijuana. It would just give residents the right to vote for or against legalization. Still, it’s a big step forward for the state.

States That May Pass Recreational Cannabis Laws in 2020

Some states that allow medical marijuana could begin the transition to recreational cannabis after the 2020 elections. Depending on the state, recreational cannabis laws will depend on voter initiatives and who wins elections.

Arizona

Arizona failed to pass a ballot initiative by just 3% in 2016. Assuming that supporters can get at least 237,645 signatures, a new initiative will appear on the 2020 ballot.

Interestingly, some cannabis groups oppose the initiative, so the ballot may have two options for voters to consider.

New Mexico

New Mexico always seems on the cusp of legalizing recreational cannabis. Governor Michelle Lujan Grisham already had a task force to create a blueprint for legalization. The House passed a law that would let adults consume cannabis legally.

New Mexico’s Senate, however, remains skeptical. Without the Senate’s support, New Mexico will not pass new cannabis laws in 2020. That means that the 2020 Senate races could determine the fate of legalization in New Mexico. If the skeptics lose their positions, the state could start passing updated laws.

New Jersey

New Jersey fell short of passing recreational cannabis laws in 2019. In 2020, voters will get a chance to have their say.

One poll shows that 62% of New Jersey residents support legalization. Only 32% oppose it. The 2019 version of the survey showed 59% support. The slight increase could give the state enough votes to enact recreational cannabis laws. Legalization will likely depend on whether people turn up to vote.

New York

Most politicians in New York seem to agree that the state needs to pass recreational cannabis laws. New York, however, failed to reach this goal in 2019. The issue isn’t so much whether the state supports recreational legalization, but how to write laws that would promote social justice during the legalization process.

If Governor Andrew Cuomo gets his way, New York will set aside 50% of cannabis tax revenue to invest in communities that have been disproportionately harmed by prohibition.

Connecticut

New York’s passing recreational cannabis could stimulate Connecticut to follow its neighbor’s lead. Currently, it seems unlikely that Governor Ned Lamont will stick his neck out to support legalization. If New York chooses legalization, though, it will become less risky for Lamont to do the same. It’s a long-shot, but it’s possible.

Conclusion

Most states have some form of legal marijuana. The influence of cannabis on real estate prices doesn’t become significant, though, until states pass recreational marijuana laws. Once that happens, the industry starts to attract more investors, which can drive up the price of buildings, farmland, equipment, and employees.

Every investment requires some level of risk. Whether buying cannabis real estate now will lead to future profits largely depends on predicting how voters will respond to the country’s evolving beliefs.

March 17, 2020 / by / in
Directors and Officers Liability Insurance in the Cannabis & Hemp Industries

The legal cannabis and hemp industries have enormous room for growth. One report from New Frontier Data shows that legal cannabis sales will come close to $30 billion by 2025.

Despite the potential growth of legal cannabis and hemp sales, the industry is still very young. As a new industry, no one knows what will happen. Companies may reach or exceed the projection from New Frontier Data. Then again, the cannabis industry faces a lot of risks that could harm cash-strapped businesses struggling to earn profits.

The wide range of risks makes it crucial for the directors and officers of cannabis companies to get liability insurance that protects them from personal financial loss.

Risks Can Come at Unexpected Times

The cannabis and hemp industries face some ongoing dangers. A lot of states still haven’t adopted recreational cannabis laws. Nearly 18 states don’t even allow medical marijuana.

Luckily, most cannabis and hemp companies understand federal and state laws well enough that they can avoid prosecution. Plenty of other risks, however, can come at unexpected times.

In March, one of the world’s largest cannabis companies announced that it would layoff 500 employees and close two of its indoor cultivation facilities. The Canadian company says that it made the changes because:

  • The recreational cannabis market grew slower than expected in Canada.
  • Changes to federal law permitted outdoor cultivation after the company had invested in expensive greenhouses.

The cannabis company couldn’t have foreseen these risks when it spent a significant amount of money developing indoor cultivation facilities intended to meet the anticipated demand.

Risks That Could Harm Directors and Officers

Other hazards that could harm the directors and officers of legal cannabis and hemp companies include:

  • Failing to meet profit expectations.
  • Falling short of security requirements that protect inventory and cash.
  • Letting customers purchase more products per visit than allowed by local law.
  • Selling products that don’t comply with safety laws, such as labeling products and placing items in childproof containers.
  • Data breaches that leak customer information to criminals.

Like any business, cannabis and hemp companies can also get accused of things like:

  • Breach of duty.
  • Breach of contract.
  • Misrepresentation.
  • Unfair competitions.
  • Misappropriating trade secrets.

Any of these risks could leave companies open to lawsuits from investors, vendors, customers, or government agencies.

Protection Offered by Directors and Officers Liability Insurance

When companies make mistakes, directors and officers can expect repercussions. Failing to label a product correctly, for example, could mean that a vendor can sue the supplier. If the supplier mislabeled the product, the vendor could very well win the suit.

Directors and officers liability insurance helps ensure that the repercussions only affect the business. The insurance offers personal protection to directors and officers who hold policies.

Depending on the policy, directors and officers liability insurance may pay for legal defense related to:

  • Company performance.
  • Decisions that exceed a position’s role.
  • Not complying with regulations.
  • Regulatory infractions.
  • Mismanagement of funds.

Directors and officers liability insurance does not cover all activity, though. Business leaders should not expect liability insurance to protect them from:

  • Property damage.
  • Personally profiting from misdeeds.
  • Fraud.
  • Litigation started before getting liability insurance.

Finding Directors and Officers Liability Insurance for Cannabis Companies

Hundreds of insurance providers sell directors and officers liability insurance policies. Unfortunately, few of them are willing to sell policies to the directors and officers of cannabis companies. Even when a company operates legally, insurance providers tend to avoid the cannabis and hemp industries.

Directors and officers liability insurance also tends to cost a lot more for business leaders in the hemp and cannabis industries. Directors and officers working in the cannabis industry can expect to pay two to 10 times more than those working in areas like technology and manufacturing. Prices can range anywhere from $20,000 to $100,000 per year.

The industry has faced similar challenges from banks and lenders. Until Congress changed its “suspicious activity report” rule, most banks decided that they didn’t want to work with hemp growers, manufacturers, and sellers. Thankfully, the law has been changed to make banks feel at ease when creating accounts for hemp businesses.

The recreational cannabis industry, however, still faces a lot of challenges that prevent companies from accessing the services they need from banks and insurers.

Hopefully, the insurance industry will evolve as more states legalize recreational cannabis. Some insurance companies, however, will probably stay away from cannabis until the federal government lifts prohibition. Until that day comes, directors and officers will have to spend higher-than-average amounts of money on liability insurance available from a handful of companies.

Do Cannabis and Hemp Companies Need D&O Liability Insurance?

Anything can happen in a rapidly evolving market. Investors may feel angry when they don’t see quick returns. Government agencies may pursue litigation against cannabis companies that operate within the law. Business leaders could make bad calls that hurt company performance.

Given the unknown level of risk, it makes sense for companies to protect their directors and officers with D&O liability insurance. Without a reliable insurance plan, experienced CEOs and managers may choose to stay in other industries until they see more certainty. Losing those people would limit a company’s ability to reach or exceed expectations. That makes D&O liability insurance essential.

March 10, 2020 / by / in
Rule Your Extraction Business with an Iron Fist

When it comes to processing cannabis and hemp materials—extraction is one of the most popular methods. All plants are made of chemical compounds, like terpenes/terpenoids for smell and flavanoids for flavor. These compounds are often extracted in plants like lavender, and even your daily coffee or tea is similar. An extraction process essentially uses a solvent to separate the terpenes and flavanoids from the plant material.

There is countless extraction equipment manufacturers and systems on the market that all achieve the same thing, but with varied results in processing power, quality of product, and run-times. Additionally, not all extraction systems are built with quality materials—some are built using inferior steel and use cheap components and pumps. One closed-loop extraction system stands out, and if you’ve ever wondered how award-winning extracts are made, Iron Fist Extractors is the answer. These finely engineered, closed-loop extractors are designed to produce full spectrum extracts with amazing terpene profiles.

Iron Fist Extractors:

  • Made in USA
  • 100% American Stainless Steel
  • Fully Customizable
  • Versatile to use Butane or Propane
  • Use the Highest Quality of Parts and Components
  • Come equipped with Duel Haskel Recovery Pumps
  • Can achieve solvent recovery times of 1lb per minute
  • Produce award winning extracts

Whether you’re working with cannabis, hemp, or any plant you want to extract essential oils from, discover the difference an Iron Fist makes in your products.

Visit: https://ironfistusa.com/extractors/ for more information and pricing.

January 20, 2020 / by / in
Cannabis and Hemp in Thailand

Are you an entrepreneur or business person looking to invest in the cannabis and hemp industry? If yes, Thailand might be your most probable destination. With numerous developments, regulations, and research, the Thai’s cannabis market is becoming a hit, not only in Asia but also globally,

Thailand is among the most promising nations in terms of cannabis trade and consumption. While other governments are still putting restrictions on cannabis and hemp, Thailand is exploiting this somewhat controversial industry. This article provides a complete overview of the cannabis and hemp industry in Thailand. Read on!

History of Cannabis and Hemp in Thailand

Cannabis, (popularly known as kancha) and hemp use have come a long way, from the traditional kitchen ingredient to the modern medicinal substance. Laborers used marijuana as a muscle relaxer while women used it to ease labor pains. However, the Cannabis Act, B.E. 2477 of 1935, criminalized the possession, use, or sale of cannabis.

What Does Thai’s Cannabis Look Like?

Thailand’s kancha is different from that from other parts of the world. It is a pure Sativa landrace highly popular for its high THC content and relatively low CBD. Its leaves grow in clusters and feature wispy hairs. Also, it has a citrus scent and produces a lighter “high” than other types of cannabis.

The majority of Thai’s cannabis varieties take around 20 weeks to flower due to lack of light variation and temperature between seasons.

In the modern-day, many people in Thailand regard cannabis as traditional medicine. Unlike other drugs, cannabis doesn’t experience a lot of stigmas. The government’s contribution to the legalization of kancha removes any significant war on it.

Cannabis and Hemp Regulations in Thailand

Thailand has laws in place that regulate the production and use of hemp and marijuana. Although the rules were more stringent in the past, the Thai government is easing them day by day.

To start with, the government has separate laws for hemp and cannabis. Hemp is legally distinct from cannabis as it contains less than 0.2% THC. In 2018, the government enacted its first regulations that allowed government entities and agencies to apply for hemp cultivation permits. The registered entities would grow hemp in any of the following provinces: Nan, Chiang Rai, Mae Hong Son, Tak, Phetchabun, or Chiang Mai. Hemp strains from these provinces are highly regarded for their high-quality fibers, making them suitable for the textile industry.

In December 2019, Thailand legalized the medicinal use of cannabis. Medicinal kancha can be used to treat the following;

  • Multiple sclerosis
  • Child epilepsy
  • Cancer

Recreational use, however, is a crime that attracts more than 15 years in prison.

In the new regulations, 99% pure hemp extracts containing a CBD to THC ratio of 0.01%:0.2% weight can be used in pharmaceutical drugs and herbal products. Dried hemp back, seeds, fibers, and stems can as well be used in food products, cosmetics, and traditional medicines.

In recent regulations, Thailand removed hemp extracts and low-level cannabis from the list of banned narcotics. Hemp seed and oil derivatives are allowed. CBD extracts from hemp plants and marijuana were also removed from the list of banned narcotic substances.

Currently, kancha is grown by government agencies and research institutions such as universities. They grow industrial-grade cannabis rather than the typical garden cannabis.

Production and Trade of Hemp and Cannabis in Thailand

Thailand highly restricts the growth, manufacturing, and trade of both hemp and kancha. It is illegal to grow cannabis at home whether for recreation or medicinal use. Also, the sale of cannabis seeds is illegal. This means that you cannot purchase them in Thailand or buy from another country.

With a government permit, a farmer can cultivate hemp. The law requires that hemp must not exceed more than 1% THC. Hemp can only be grown in designated areas, while seeds can exclusively be sourced from licensed hemp-harvesting producers.

With a valid license, the farmer can grow, harvest, or process hemp for;

  • Research
  • Commercial use
  • Production and distribution of seeds
  • Household use

Thai Cannabis Market Scope

The Thai cannabis and hemp industry is soaring very fast since the legalization of medicinal cannabis and hemp on medicinal and food products. According to the Bangkok Post, Thailand’s cannabis industry is estimated to hit around USD 661 million by 2024.

Thailand approved USD 4 million to expand marijuana farms for medicinal purposes. This will help fend off any foreign competition for medicinal marijuana.

The Future of the Hemp and Cannabis Industry in Thailand

Thailand is poised to overtake the United States’ Hemp and Cannabis Industry within the next 5- 10 years.

There are various proposals to legalize the cultivation of kancha. Thailand is gearing up towards full legalization of kancha that will allow Thais to cultivate up to 6 cannabis plants at home. This kancha will be sold to the government for conversion to medicinal marijuana.

It looks likely that farmers will be able to plant cannabis trees in their gardens. While this will have to wait, the government has built a very large industrial-scale, medical marijuana facility. The Government Pharmaceutical Organization (GPO) is hoping to cultivate plants that will produce enough ingredients for the manufacture of a million, 5ml kancha oil bottles by Feb 2020.

Future kancha strains will have differing percentages of CBD and THC. Maejo University, the premier cannabis research institution, has developed a marijuana strain called Issara. This strain offers equal percentages of CBD and THC. These strain will treat illnesses and symptoms that require different ratios.

January 13, 2020 / by / in
Global Cannabis Markets to Watch in 2020

The global cannabis industry is taking shape, with new markets emerging gradually. From North America to Europe and Asia, Cannabis is becoming a new raw market for investors and business people. The recent wake of legalizations is leading to the emergence of new markets for cannabis investors.

2020 will likely be another year of the boom in the cannabis industry. With investors willing to push resources in this business, opportunities seem to emerge on the horizon. The global cannabis and hemp market is expected to hit over $40.6 billion by 2024, and these markets are emerging as the ultimate hits;

Canada

After the legalization of both medicinal and recreational marijuana, Canada is becoming a force in the industry. Big companies are gaining positions in this promising market. In 2019, Deloitte estimated annual revenue of cannabis sales at around USD 22.6 billion. The firm also estimates demand to go above 600,000 kilograms per year.

As of July 2019, there were about 38 licensed producers who could grow, harvest, and process cannabis. In Canada, marijuana has been legalized on the federal level. This provides companies operating in the industry with greater safety and security.

Below are the top Canadian cannabis companies;

  • Canopy Growth
  • GW Pharmaceuticals
  • Curaleaf Holdings
  • Cronos Group
  • Aurora Cannabis
  • Green Thump Industries
  • Tilray Holdings
  • Aphria
  • Trulieve Cannabis
  • CannTrust Holdings

All these companies have massive investments in the Canadian cannabis industry. Also, they have the largest marijuana stocks in 2020.

United States

Unlike Canada, Cannabis is legal on state rather than the federal level. As of 2019, the District of Columbia and 33 states had legalized marijuana for either medicinal, recreational, or both purposes. Only 14 states have legalized the recreational use of cannabis. Demand for marijuana is on the rise, with an estimated $8 billion in revenue generated in 2019.

An estimated 38.4 million people consume cannabis, either legally or illegally. In 2020, the cannabis market is poised to grow by more than 25%. The total legal cannabis sales are expected to reach nearly $30 billion by 2025. According to research by Business Wire, 36% of cannabis consumers reported daily cannabis use while another 59% admitted consuming cannabis at least once a week.

Florida, North and South Dakotas, New Jersey, Missouri, and Arizona states are likely to step up in their campaign towards the legalization of marijuana.

Thailand

Thailand is the first Asian country to legalize medicinal cannabis. It is fast growing in the cannabis industry after recent legalizations. In September 2019, Thailand lifted cannabis and hemp extracts from the list of banned narcotic substances. Thailand allows CBD extracts not exceeding 0.2% THC.

There is an ongoing proposed draft to allow Thais to grow a limited number of cannabis trees at home. Thailand’s cannabis industry is estimated to hit $661 million (around 21B bhat) by 2024. If exports are made legal, Thailand could be exporting approximately $20 billion by 2025.

Germany

In 2017, Germany legalized the use of medicinal marijuana. CBD oil, edibles, cosmetics, crystals, and capsules are allowed in German markets. However, THC levels are strictly controlled.

Germany allows imports exceeding 2,800 kilos of medicinal marijuana to meet local demand. In 2019, Germany’s Federal Institute for Drugs and Medical Devices (BfArM) issued licenses for domestic production of cannabis. The main aim of this licensing was to reduce the over-reliance of imports from Canada and the Netherlands.

In 2018, the German cannabis industry was valued €73.7 million. Cannabis patients are poised to exceed one million by 2024. By 2028, the cannabis market is estimated to reach €7.7 billion.

In 2020, around five cannabis companies could be listed in the European Stock Market. While stocked markets missed out in the early stages, German companies are looking to capitalize on the growth. By late 2020, German suppliers distributing various products will also multiply significantly.

Italy

In Italy, cannabis is legal for both industrial and medicinal uses. However, recreational use is decriminalized but highly regulated. Possession of small amounts of cannabis for personal use is a violation that’s subject to fines. Unlicensed cultivation of cannabis is illegal and subject to imprisonment.

Licensed cultivation of marijuana in Italy for industrial and medicinal purposes requires the use of licensed seeds. The Stabilimento Chimico Farmaceutico di Firenze (SCFF) is the only authorized grower of medicinal cannabis.

Although the cannabis market in Italy is meager, it’s expected to triple in 2020 from last year’s 200 kilograms. Despite these small quantities, Italy remains one of the largest European markets. Italy continues to legalize marijuana and might consider recreational use in the coming years.

Uruguay

Uruguay remains the pioneer country globally to legalize recreational marijuana. Also, it’s the first country to allow commercial trade of Marijuana.

In Uruguay, there are more than 7,163 home growers and over 36,487 marijuana customers. However, only two companies have licenses to grow high-THC medicinal marijuana.

Investors are betting on Uruguay to become a global export hub for medicinal marijuana. According to the Medicinal Union of Uruguay, investment in the cannabis market has surpassed USD 100 million. However, this investment is not enough to satisfy the current demand.

According to Monitor Cannabis, Uruguay’s cannabis market could exceed USD 85 million annually if the market is fully expanded.

The Bottom Line

Above are some of the most promising cannabis markets globally. For investors looking to put their resources in the cannabis industry, these are among the most profitable markets. While cannabis is subject to restrictions, it’s becoming one of the most profitable businesses to venture in. The global demand for cannabis exceeds the supply and regulations in place. However, the recent wake of legalizations gives hope to a promising future.

January 13, 2020 / by / in
Emerging Cannabis Markets to Watch in 2020

Although the federal government keeps dragging its heels, more and more states keep legalizing cannabis. When recreational cannabis sales started in Illinois on January 1, 2020, the state’s lieutenant governor, Juliana Stratton, bought a can of popular microdose gummies from a dispensary.

On January 1, Illinois became the 11th state to sell recreational marijuana. The new year may bring even more opportunities to entrepreneurs that want to enter the legal cannabis market.

Interested parties should keep their eyes on the following six markets.

Vermont

Vermont’s state government has already made significant moves toward legalizing cannabis sales. In 2018, Vermont passed laws making it legal for adults 21 and over to possess and grow cannabis.

In 2019, the Vermont House and Senate even started the process of approving marijuana sales. Unfortunately, the House went on break in May, leaving the final steps unfinished.

Pro-legalization advocates believe that the state will pick up the cause in 2020 to finalize sales. Of course, there is some opposition. The majority of the state’s citizens and legislators side with legalization, though, so there are good signs that Vermont will become the next state open to cannabis retail businesses.

New York

New York is an interesting state with a sharp divide between the opinions of people living in the urban south and those living in the more rural north.

The divide has frustrated pro-legalization activists in New York City for well over a decade.

With Andrew Cuomo as New York’s governor, the rest of the state may finally get the push it needs to catch up. Cuomo says that he plans to make legalization a priority for 2020. Part of his plan includes initiatives that should appease cautious legislators in Albany. For example, Cuomo wants to:

  • Create an Office of Cannabis Management that would regulate sales of medicinal and recreational cannabis.
  • Fund a hemp and cannabis research facility at the State University of New York (SUNY).
  • Work with neighboring states to prevent illegal, cross-border sales.

New York couldn’t get the job done in 2019, but 2020 brings new hope to cannabis entrepreneurs.

Arizona

Advocates in Arizona have been trying to legalize medicinal cannabis since the mid-1990s. Each attempt brings the state closer to legalization. Many people believe that 2020 will bring medicinal and recreational sales to the state.

In 1996, 65% of Arizona voters supported a ballot initiative that would let doctors prescribe cannabis. When legislators removed the prescription option, Arizonians voted against the initiative.

Voter support went down from there. In 2002, voters did not support medical cannabis. In 2010, 50.1% of voters supported medical marijuana. The law, however, included several limiting provisions that made it ineffective for many of the state’s residents.

A big push for recreational cannabis came in 2016, but the ballot initiative failed when only 48.7% of voters supported it.

Why would anything change in 2020? Mostly because it took monumental amounts of money for politicians and certain companies to change voters’ minds. There are some signs that no one wants to make such a financial commitment in 2020, which could mean that voters finally get the access they’ve asked for several times over the last few decades.

Also, another ballot initiative will appear in 2020. Although, there is some opposition.

Florida

Florida already has medicinal marijuana, which is great considering that the state struggles with one of the country’s highest overdose rates. Many people find that access to cannabis can curb cravings for opioids.

Evolving from medical to recreational cannabis takes a lot of political will, though. At the beginning of 2020, it looks like the state lacks enough signatures to get a voter initiative on the November ballot. Advocacy groups have until February 1 to get the signatures they need.

In other words, Florida has a fighting chance. If full legalization doesn’t happen this year, then the state has, at the very least, taken one more step to recreational cannabis.

New Jersey

Depending on which news source you pay attention to, recreational cannabis will “absolutely pass in 2020” or it “has absolutely no chance of passing in 2020.”

Both perspectives involve a lot of wishful thinking.

Here are the facts:

  • New Jersey has failed to pass recreational cannabis laws in the past.
  • Lawmakers have agreed to put recreational cannabis on the 2020 ballot.
  • The state government doesn’t have to abide by the voice of the voters.
  • Governor Phil Murphy supports full legalization.

There’s a good chance that New Jersey will soon get legal cannabis. 2020 is a good time for businesses to start exploring their options. Realistically, though, the state probably can’t have its laws in place until 2021.

New Mexico

New Mexico probably seems like a long-shot to most people who don’t know much about the state, which has a reputation for conservative thought. The reality is that New Mexico has a diverse, somewhat unpredictable citizenry that lean conservative on some issues and liberal on others. Not that cannabis legalization is necessarily a right or left issue, of course.

The good news for cannabis entrepreneurs is that recently-elected Governor Michelle Lujan Grisham has put legalization on her list of accomplishments for 2020. Her list also includes crime prevention, college tuition assistance, and importing prescription drugs from countries with lower prices.

Hopefully, cannabis legalization will not become a bargaining chip that gets sacrificed for the governor’s other priorities.

Recreational cannabis failed last year, but lawmakers have made changes to their approach. The majority of New Mexico residents say they support legalization. Now, it’s up to the legislature to make a decision.

No one knows how state laws will evolve. Cannabis businesses need to pay close attention to these six states, though. They could represent excellent opportunities for growth.

January 12, 2020 / by / in
Things to Consider When Buying or Selling a Cannabis Business in California

Buying or selling a business is a complex undertaking in most situations. But operating in the cannabis industry adds extra layers of difficulty. It’s highly regulated, and the laws may vary greatly from one jurisdiction to another. This is true even within a single state. In California, you must review several considerations before attempting to launch a cannabis business or transfer ownership of an existing cannabis entity. Be aware that industry regulations are evolving. Changes may occur from one legislative term to the next. The following are some of the many factors you must consider when buying and selling a Cannabis Business in California.

Buying a California Cannabis Business

To purchase a company that operates in the commercial cannabis field, you need to consider registration, licensing, and permit requirements for the state, county and city you will be operating in. The type of cannabis business you’re considering and any employee requirements are a couple of the things you need to review. You must also look closely at any rules and regulations that are specific to the city the business is in.

Licensing Authorities

California does not permit transfer of cannabis licenses. When purchasing a cannabis business, you need to obtain your own license. California has created three separate state-level licensing entities for the cannabis businesses.

  1. Bureau of Cannabis Control — The BCC Bureau issues licenses to businesses that sell, distribute, trade and test medical cannabis and cannabis for recreational adult use. It also handles licensing for temporary events. This Bureau issues licenses to cannabis distribution, manufacturing and retail microbusinesses, as well.
  2. CalCannabis Cultivation LicensingThe licensing branch of this California Department of Food and Agriculture division issues licenses to businesses that cultivate cannabis in California.
  3. CDPH’s Manufactured Cannabis Safety Branch — The MCSB is a division of the California Department of Public Health that regulates the manufacturing of commercial cannabis in the state.

Before buying a cannabis business, educate yourself on the licensing requirements of the California authority you will be dealing with. These typically include background checks and surety bonds. Depending on the type of business you’re licensing, they can also include inspections, environmental reviews and many other demands.

Business Type

The laws and regulations governing a cannabis business vary depending on the type of business you’re operating. Will you be growing cannabis or manufacturing, selling and distributing cannabis and cannabis products? These decisions not only determine which licensing authority you must use. They also impact how extensive the process is, what you need to do to ensure compliance and what the related expenses might be. For example, businesses that cultivate cannabis are subject to the most regulation. But manufacturing edibles includes many additional expenditures, like setting up a commercial kitchen, brand development and marketing. Don’t forget tax implications.

Workforce

You’ll need staff to run your cannabis business. It’s a booming industry and there’s lots of competition. California leads the way in cannabis employment numbers. But as more states enter the fray, it’s likely to become more challenging to attract experienced, qualified staff. Consider industry salary standards and how difficult it will be to maintain good employees and hire new ones, when necessary. Fortunately, California currently has no special employee licensing or certification requirements for cannabis workers. Though they do need to be 21 and pass background checks.

Local Legal Considerations

Municipalities throughout California address commercial cannabis regulations differently. Some don’t allow these businesses at all. In the ones that do support the cannabis industry, the laws governing licensing and operation may be more strict and demanding than the state level laws. For example, in Los Angeles, Proposition M breaks licensing into three phases, wherein existing medical marijuana dispensaries enjoy a grandfather clause. But as a buyer, you need to check whether the dispensary is on the city’s EMMD list. Other California cities have enacted their own local laws that you must be aware of before buying an existing cannabis business.

Selling a California Cannabis Business

As the owner of a cannabis business in California, you are aware of its potentially high value. But when selling, to attract a quality seller and make a good profit, you need to document everything. Give your buyer a reason to work with you and show them that your business is organized and well-run. You can make this impression with the following documentation.

  • Licensing Documents — Demonstrate proof of state licensing and compliance with all state and local regulations and requirements.
  • Proof of Ownership — Offer documentation of who owns the business. If it’s ever changed hands, ensure you can demonstrate legal transfer of ownership.
  • Current Contracts and Agreements — Operating a business requires many business transactions with vendors, suppliers, leasing companies, employees and other entities. Provide these to a buyer so they understand their ongoing obligations.
  • Accounting Records — Show your buyer what they’re getting into with detailed bookkeeping and accounting records of how your business is run. Reveal profits, losses, debts and projections.
  • Tax Records — Provide proof that you’re in compliance with tax laws and regulations.
  • Disclosure of Negative Factors — If you have legal issues, pending claims or lawsuits, be sure to reveal these issues to your buyer. Retain control of the narrative by being upfront and disclosing first.

Whether buying or selling a cannabis business in California, you must carefully review all the legalities. Look at laws and regulations on the state, county and city level to ensure full compliance. Turn to the services of professionals in the real estate, tax and legal fields. Be sure they have experience with commercial cannabis. Planning, knowledge, education and preparation are key to a successful business transaction in this industry. Perform due diligence before you sign.

January 9, 2020 / by / in