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

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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.

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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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Trump VP pick Vance opposed marijuana banking but silent on legalization

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U.S. Sen. JD Vance, the Ohio Republican whom Donald Trump picked as his running mate for the November presidential election, is no supporter of federal marijuana reform.

Nor did the 39-year-old former investment banker and “Hillbilly Elegy” author support adult-use marijuana legalization in Ohio last year.

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But Vance doesn’t appear to be much of a cannabis-culture warrior, either, preferring instead to spend his political capital elsewhere.

No ‘friend’ of marijuana industry

“Is Vance a friend of the industry? Absolutely not,” Steve Schain, a Philadelphia-based attorney who specializes in cannabis banking and taxation issues, told MJBizDaily by phone on Tuesday.

“His first and only concern is fortifying and furthering his federal role.

“That being said, like most classic libertarians, he doesn’t want to disturb

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Metrc secures cannabis track-and-trace contract extension in California

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California’s cannabis regulatory agency has extended the state’s contract with Florida-based marijuana track-and-trace software company Metrc.

The new contract took effect July 1, according to California’s Department of Cannabis Control, and will run for four years.

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The state has an option to extend the contract another two years.

The Department of Cannabis Control did not immediately respond to an MJBizDaily inquiry about the value of the contract.

Metrc said in a news release that it will focus on improving transparency and speeding up data-driven responses to support regulators and protect consumers.

According to Metrc, its traceability system is billed to track the life cycle of cannabis-based products, including:

Origin. Testing results. Handling. Chain-of-custody information.

The timing of the contract extension

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Colorado medical marijuana patient numbers hit new low

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The number of medical marijuana patients in Colorado is the lowest it’s been since 2014, when adult-use sales in the state began.

A little more than 65,100 patients were enrolled in Colorado’s MMJ program in May, Denver TV station KDVR reported, citing data from the state’s Department of Public Health and Environment.

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The number of medical marijuana patients in Colorado peaked in October 2014, when the registry contained 117,239 patients, according to KDVR.

The last time the state had more than 100,000 MMJ patients was in November 2016, the TV station noted.

Medical marijuana sales in Colorado rebounded in 2020 and part of 2021 but have been declining since September 2021, according to the report.

Colorado’s total cannabis sales numbers haven’t been

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