Debunking Employee Stock Ownership Plan Myths & Fears for the Cannabis Industry March 7, 2024 Darren Gleeman Banking, Finance & Real Estate 1 Comment By: Darren Gleeman, Managing Partner of MBO Ventures An ESOP is a way to transfer ownership of a company, letting employees become the owners instead of selling to outside investors or competitors. Here's the basic idea: the company borrows money… Read More→
The immediate impact of 280E on price multiples of cannabis companies: Part IV [1][2] February 28, 2024 Lane Bruns Banking, Finance & Real Estate, Cannabis Investments 0 Comments By Lane Bruns, CEO of ICANIVEST PART IV: EV/EBITDA Multiple = Enterprise Value(enterprise) /Earnings before Interest Taxes Depreciation and Amortization (enterprise) Recall that the removal of 280E means cannabis companies stop paying taxes on gross margins and start paying taxes… Read More→
The immediate impact of 280E on price multiples of cannabis companies: Part III [1][2] February 27, 2024 Lane Bruns Banking, Finance & Real Estate, Cannabis Investments 0 Comments By Lane Bruns, CEO of ICANIVEST PART III: Price/Earning Multiple = Market Cap (equity)/ Earnings (equity) Recall that the removal of 280E means cannabis companies stop paying taxes on gross margins and start paying taxes on net income, effectively reducing… Read More→
The immediate impact of 280E on price multiples of cannabis companies: Part II February 22, 2024 Lane Bruns Banking, Finance & Real Estate, Cannabis Investments 0 Comments PART II: EV/S Multiple = Enterprise Value (enterprise) / Sales (enterprise) Recall that the removal of 280E means cannabis companies stop paying taxes on gross margins and start paying taxes on net income, effectively reducing tax rate anywhere from ~70%… Read More→
The immediate impact of 280E on price multiples of cannabis companies: PART I [1][2] February 20, 2024 Lane Bruns Banking, Finance & Real Estate, Cannabis Investments 0 Comments By Lane Bruns, CEO of ICANIVEST Executive Summary In this 4-part series, we define and analyze the appropriate price multiples to value cannabis companies with and without 280E. In Part 1, we discuss the nuances around using price multiple ratios… Read More→
Tax implications of cannabis rescheduling February 12, 2024 Michael Harlow Banking, Finance & Real Estate, IRS 280E, News & Insights, Spotlight 1 Comment By Michael Harlow and Seth Sherer, Cohn Reznick Over the years we have had many planning meetings with clients where they express extreme frustration when they see their projected tax liability. More than one has told us that 280E makes… Read More→
The immediate impact of 280E on cannabis companies’ DCF valuations January 22, 2024 Lane Bruns Banking, Finance & Real Estate, Cannabis Investments, Uncategorized 0 Comments By Lane Bruns, ICANIVEST Executive Summary and Results This article identifies the variables in the DCF (discounted cash flow) valuation model that will immediately change if and when cannabis is rescheduled to a Schedule 3 or below drug. It also… Read More→
What Lenders Look for In Cannabis Loan Due Diligence December 28, 2023 AggregatedNews Banking, Finance & Real Estate 0 Comments By Griffen Thorne, Attorney at Harris Sliwoski You may think that due diligence is something reserved for business or real estate purchases. But due diligence is also a must for lenders in cannabis loan transactions. I recently wrote a post… Read More→
What to Expect in Cannabis Real Estate Deals December 8, 2023 AggregatedNews Banking, Finance & Real Estate 0 Comments By Griffen Thorne, Attorney at Harris Sliwoski Cannabis real estate transactions can be notoriously complicated – much more so than your average real estate deal. On January 9, 2024, I’ll be speaking on a panel called “Navigating Real Estate Issues… Read More→
Cannabis Companies and the OTC Markets December 7, 2023 AggregatedNews Banking, Finance & Real Estate 0 Comments By Vince Śliwowski, Managing Partner, Harris Sliwoski I stumbled upon this recent post by Jason Paltrowitz titled “Lawful but Awful: The Small Cap IPO Cycle.” It contains some interesting findings and I like everything about it for cannabis companies, except… Read More→
What Cannabis Companies Can Expect When Borrowing Money December 6, 2023 AggregatedNews Banking, Finance & Real Estate 0 Comments By Griffen Thorne, Attorney at Harris Sliwoski Cannabis companies that need more money than they can generate through sales generally have two options: borrow money (debt) or solicit investments (equity). Over the years as the industry has constricted, equity finance became… Read More→
Safe Harbor Financial’s Year of Living Dangerously November 28, 2023 Tom Hymes Banking, Finance & Real Estate, News & Insights, Spotlight 0 Comments Denver, Colorado-based Safe Harbor Financial (Nasdaq: SHFS) was profiled by Cannabis Business Executive back in February 2022, in the middle of a De-SPAC transaction that, once completed, would greatly expand the fintech platform’s reach and ability to provide its long-established… Read More→
Cannabis Banking Today November 17, 2023 AggregatedNews Banking, Finance & Real Estate, Oregon 0 Comments By Vince Sliwoski, Principal at Harris Sliwoski We are helping build out another cannabis banking program here in Oregon. My law firm has done a series of these for credit unions (“CU”s) and other financial institutions (“FIs”) going back to… Read More→
Feud over power at Colorado cannabis farm heats up November 6, 2023 AggregatedNews Banking, Finance & Real Estate, News & Insights 0 Comments Area 420, one of the largest commercial pot operations in the country, is the backdrop for a legal showdown between its owner and an aspiring marijuana grower. An aspiring recreational marijuana grower who bought land at one of the largest… Read More→
Bank Of America, NRA, And Mastercard Are Lobbying On Marijuana Banking October 23, 2023 AggregatedNews Banking, Finance & Real Estate 0 Comments Bank of America, the National Rifle Association, and Mastercard are among the entities that are currently lobbying on the marijuana banking act. As first reported in an article published on Cannabis Wire on October 20, Bank of America, the National Rifle Associaton,… Read More→