Marijuana Business Daily

For plant-touching marijuana companies, most lending options tied to property

Published

2 years ago

February 1, 2023

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When it comes to borrowing money as a marijuana company, most roads lead to real estate.

“The industry has challenges accessing capital markets that other industries do not,” Travis Goad, managing partner at Pelorus Equity Group, said of plant-touching marijuana companies.

“In a fully developed market, there’s real estate as one lending source and then there are pure corporate loans as another lending source. In this space, the vast majority of financing is tied to your real estate,” added Goad, whose firm is a cannabis-focused real estate lender.

Applications for cannabis business licenses often require proof of real estate, leaving precious little capital for successful applicants to get their companies up and running.

For marijuana businesses that own property, there are three main ways to borrow, according to Goad, who runs Pelorus’ New York office:

Real estate lending: These loans require borrowers to contribute 25%-40% in

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MJBizCon panelists issue cannabis industry predictions for 2025

Published

2 days ago

December 4, 2024

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LAS VEGAS – Hearings to reschedule marijuana began only this week, but the cannabis industry should look for the U.S. Drug Enforcement Administration to reclassify the plant in 2025.

That’s the prediction that MJBizDaily political reporter Chris Roberts made Wednesday during the annual “State of the Industry” general session at MJBizCon, the world’s largest B2B cannabis industry event.

“I think rescheduling does happen – I think it happens sometime in 2025,” Roberts said on stage at the Las Vegas Convention Center.

Moving marijuana from Schedule 1 of the Controlled Substances Act – a category reserved for substances with no accepted medical use and high potential for abuse – to Schedule 3 would exempt regulated cannabis operators from the burdensome Section 280E of the Internal

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Florida approves 22 applicants for medical marijuana dispensary licenses

Published

1 week ago

November 26, 2024

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The wait is over for 74 applicants in Florida hoping to secure Medical Marijuana Treatment Center licenses.

The state’s Office of Medical Marijuana Use on Tuesday published the list of 22 companies that received “letters of intent to approve” their license applications.

In Florida, medical cannabis dispensaries are called Medical Marijuana Treatment Centers (MMTC).

The successful applicants were:

A Good Decision Alamanda Farms East Coast Packers FG Operating Florida Florida Sports Consultants (doing business as Belushi’s Farm Florida) Gates Housing Group Global Investment Group (dba Infinite Wellness) Green Point Research Healing Greene FL KCOF (dba Klutch Cannabis) King Palms O’Donnell Landscapes Pioneer Growers of Florida Pure Beauty Farms RAAB (dba Canna Direct) Star Buds Florida Statewide Property Holdings FL Stiiizy Florida

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Rejected applicants sue Minnesota over marijuana social equity licensing process

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2 weeks ago

November 22, 2024

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Two women are suing Minnesota’s cannabis regulator after being denied an opportunity to participate in the upcoming lottery for adult-use marijuana social equity business licenses.

Cristina Aranguiz and Jodi Connolly allege in a lawsuit they filed Thursday allege that Minnesota’s Office of Cannabis Management (OCM) made an “arbitrary and capricious decision” in denying their applications to participate in the lottery and offered no explanation, the Minnesota Reformer reported.

Earlier this week, the OCM announced that roughly two-thirds of the 1,817 social equity license applicants had been disqualified because they failed to complete the application process, turned in multiple applications or disguised the true investors in their companies.

The plaintiffs’ complaint – which also names the OCM’s interim director, Charlene Briner – alleges

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