KEY POINTS: For over a decade, since the “Colorado experiment” in 2014, the Federal Government has maintained its prohibitive legal status of marijuana. Still, the pressures brought to bear by the multitude of state statutes that have locally decriminalized and...

SUMMARY Protecting consumers' safety, health, and well-being are arguably the most crucial considerations for regulators when evaluating approval for any new product. One of the issues included in the forthcoming Cannabis Administration and Opportunity Act (CAOA) is a...

IRS reiterates its position on 280E. The IRS recently issued a press release reminding taxpayers that until a final federal rule is published on the reclassification of cannabis to Schedule 3, 280E remains in effect. In the meantime, a few of the Multi-State Operators...

Key Points: U.S. Cannabis revenue growth hinges significantly on the emergence of new state markets.Ohio, for instance, is set to kick off its recreational sales next month, a move that couldpotentially be replicated in Florida (through a ballot initiative) and...

Summary: The state of California is owed ~$732M in arrears for sales & use, excise and cultivation taxes including penalties and interest. The vast majority (72%) is due from establishments that are out of business. The California Department of Tax and Fee...

Key Points: Trulieve’s recent $113 million refund has prompted other operators to reevaluate their past and future strategies as the punitive 280E tax continues to wreak havoc on the Cannabis industry. We hosted a webinar discussion to help investors better understand...

Key Points The Department of Health and Human Services (HHS) released details of its recommendation to re-schedule cannabis from schedule I to III; Drug Enforcement Agency (DEA) approval is pending but opposition and court proceedings could still delay re-scheduling....

With the progression of individual state regulated markets, entrepreneurs, investors and other industry participants have remained intoxicated by the prospects for federal cannabis reform. These interests have been further inspired by the U.S. Federal Government’s...

Arguably, one of the greatest challenges confronting the U.S. cannabis industry is the continued pressure from a thriving illicit market. Consequently, same-store top line increases have generally been insignificant and near- term consensus revenue growth projections...

Cannabis stocks have advanced sharply since August 29th when the U.S. Department of Health and Human Services announced its recommendation to remove cannabis from a Schedule 1 narcotic to Schedule III. The precise timing of the Drug Enforcement Agency ruling...

Section 280E of the Internal Revenue Code disallows businesses from deducting otherwise ordinary business expenses from gross income associated with the “trafficking” of Schedule I or II substances, as defined by the Controlled Substances Act. Once moved to Schedule...

Herbl, one of California’s largest licensed cannabis distributors is in receivership. Last year it served ~1K retailers and accounted for ~18% (~$700M) of the state’s $3.8B retail sales amount. Other licensees could be at or near a similar breaking point. California...