Cannabis News
What Cannabis Companies Can Expect When Borrowing Money
Published
1 year agoon
By
admin
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 less of an option. I recently predicted that equity investment will reignite when cannabis is rescheduled. But that hasn’t happened yet, which means that cash-hungry cannabis companies need to borrow money. And because of high taxation, overregulation, the illegal market, and so on, many if not most cannabis companies need cash.
Not surprisingly, over the years I’ve seen massive increase in debt transactions as investments decreased – both original financings and refinancing. Today, I want to look at some of the things that cannabis companies should expect when looking for cannabis loans.
Traditional lenders won’t work with cannabis companies
Cannabis companies can’t just walk into a big bank and draw a commercial cannabis loan. Many banks (especially the big ones) and institutional lenders are still too skittish to do business with cannabis companies. You can read about that here. This may change if cannabis is rescheduled, but probably not too much. Unless federal law changes to unequivocally treat cannabis as a federally legal commodity, the bigger banks will hesitate.
Because of this, expect to see private lenders, hard money lenders, and all kinds of servicing agreements with companies that loan specifically to cannabis companies.
Expect high interest
Cannabis companies that borrow money can expect to see high interest rates – often higher than “normal” businesses would be required to pay. Lenders justify higher interest on cannabis loans because of the increased risks they incur while (a) lending to an illegal business, and (b) lending into a highly volatile industry where businesses seem to go under left and right.
Security interests
Except for very small loans or loans with related parties, I can only think of a handful of times where I’ve seen completely unsecured debt in cannabis loans. A security interest is a right that the borrower or an affiliate of the borrower grants to a lender to secure payment and performance of loan. It gives a lender recourse in the event the borrower stops paying or goes under, by allowing the lender to swoop in and take the asset that is collateralized. Think of a car loan – if you stop paying the bills, the car will get repossessed. It’s the same thing with cannabis, though on a much larger scale.
The types of security interests I see most in cannabis deals are:
- Real property – Real property means real estate. If a cannabis company owns real estate, expect a lender to ask for a security interest in that real estate as part of a cannabis loan. These are granted pursuant to mortgages, deeds of trust, trust deeds, etc. (the exact type of instrument will change from state to state). But because lots of cannabis businesses don’t own property outright, that means cannabis loans are often secured by other types of collateral.
- Physical assets – Security interests in physical collateral are probably the most common form of collateral we see in cannabis loans. This may include vehicles, equipment, machinery, office equipment, racks, lights, you name it.
- Equity interests – Another very common form of collateral is equity, such as stock of a corporation or membership interests of an LLC. Very frequently, the owners of a borrower entity are asked to grant security interests in their stock in the borrower as collateral. These agreements are called pledge agreements, and are also very common.
- Other intangibles – Intangible assets, such as intellectual property, rights under contracts, future accounts receivable, and so on, may be pledged as collateral to secure a loan.
Keep in mind that cannabis regulations play a huge role in determining the scope of security and pledge agreements. Some assets can’t be pledged under state law (depending on the state), such as cannabis licenses or cannabis inventory. Cannabis companies need to be fully aware of what they can and can’t collateralize so they don’t risk their licenses.
Lastly, security interests in general are complicated and can be subject to myriad requirements under Article 9 of the Uniform Commercial Code (UCC) in each state. Security interests in real estate are often doubly more complicated. So it’s key that cannabis businesses understand the law of security interests before seeking out cannabis loans.
Corporate and even personal guarantees
Lenders also frequently ask for guarantors on a cannabis loan. A guaranty is an agreement by someone other than the borrower of the borrower’s obligations. Guarantees by natural persons (usually officers or major stockholders) are often called personal guarantees, and guarantees by entities (usually parents or affiliates of the borrower) are often called corporate guarantees. They can also have multiple guarantors and be hybrid personal/corporate guarantees.
Guarantees can be a tall ask because a guarantor will be forced to step into the shoes of the borrower. If the borrower fails to make payment, the lender can simply demand that the guarantor make the payment in its place. And guarantors usually waive a host of defenses to performing on behalf of a borrower.
Personal guarantees are obviously much riskier than corporate ones, because a person risks their own personal assets (cars, houses, art, etc.) if the borrower entity doesn’t perform. Expect a lot of negotiation by cannabis companies concerning who must serve as a guarantor, the term of any guaranty, and related issues.
Lots of filings and third-party issues
A common misconception is that loans are purely between a borrower and lender. But that’s rarely the case. Expect to see one or more of the following in most commercial cannabis loans:
- UCC filings are filings made with a state agency like the secretary of state that put third parties on notice that the lender has a security interest in certain assets of the borrower. Lenders often do UCC lien searches prior to loaning money to be sure of what a borrower has agreed to grant in the past. UCC lien forms will be filed at the inception of a loan, and terminated upon repayment.
- Mortgages/deeds of trust/etc. are recorded with the county recorder where the real property is located.
- Borrowers often must give regulatory notice to cannabis regulators, and make some disclosures, in connection with cannabis loans. Some states may even require preapproval.
- Borrowers and persons offering collateral to support a loan must also often get preapproval from a host of third parties. For example, if an affiliate of the borrower offers equipment as collateral, and that equipment is located in a leased building, the lender will often ask that the lessor consents to the lender’s entry of the property on default to take the property.
The above is a summary of some high-level things that cannabis companies can expect when trying to borrow money. As you can see, lenders really do have the upper hand in these transactions. That said, there are always grounds for borrowers to negotiate for better (or at least more palatable) terms in cannabis financings. We’ll be sure to keep writing about these topics, so stay tuned for more updates.
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The Cannabis Rescheduling Ruse – White House Says No Action Planned on Cannabis Reform, Hate to Say I Told You So!
Published
2 days agoon
April 5, 2025By
admin
The Rescheduling Ruse: Why I Told You So
In a move that surprised absolutely no one who’s been paying attention, the White House recently announced it has “no action planned” on marijuana reform. Yes, the same marijuana reform that President Trump enthusiastically backed on the campaign trail just weeks before Election Day.
The writing was on the wall all along, folks. I’ve been telling you for months that the much-hyped rescheduling of cannabis from Schedule I to Schedule III was nothing more than political theater – a carefully choreographed dance designed to generate headlines without delivering substantive change. And here we are, with yet another administration putting cannabis reform on the back burner while millions of Americans continue to live under the shadow of failed prohibition policies.
Don’t get me wrong – I’m not here to play political favorites. This isn’t a red versus blue issue. The Biden administration dangled the same carrot, initiating a rescheduling process that conveniently stalled due to “complications” with DEA hearings. Different players, same game.
Let’s take a step back and examine what’s really happening here, because the truth about cannabis reform in America is both simpler and more complex than most people realize.
Trump’s pre-election cannabis conversion was quite the spectacle, wasn’t it? Suddenly, the man who selected Jeff “Good People Don’t Smoke Marijuana” Sessions as his first Attorney General was voicing support for rescheduling, banking access, and even Florida’s legalization initiative.
But as CNN recently reported, “no action is being considered at this time.” The honeymoon didn’t even last through the first dance. The administration’s priorities lie elsewhere – immigration, government spending, foreign policy – while cannabis reform gets shelved alongside countless other campaign promises.
Interestingly, CNN did note that Trump and his transition team attempted to include cannabis banking protections in December’s government funding resolution. This behind-the-scenes effort suggests at least some genuine interest in the issue, but hardly qualifies as the bold reform millions of voters were led to expect.
This pattern should feel familiar. The Biden administration made similar overtures, with the president announcing pardons for federal marijuana possession offenses and directing an administrative review of cannabis scheduling. That process dragged on for over a year, with the DEA repeatedly delaying final action. Biden got the headlines; cannabis users got nothing.
The harsh reality? Cannabis reform makes for good campaign fodder, but terrible governance priorities. Once elected, the political calculus changes dramatically. The motivation to deliver evaporates when the votes are already counted and the special interests start calling in their favors.
At the heart of this perpetual delay lies the Drug Enforcement Administration – an agency whose very existence depends on the continuation of the drug war. Expecting the DEA to facilitate cannabis reform is like asking a turkey to vote for Thanksgiving.
The DEA has mastered the art of procedural obstruction. Under Biden, they scheduled hearings, requested extensions, and effectively ran out the clock. Under Trump, they appear poised to do absolutely nothing, perhaps not even bothering with the pretense of consideration.
The pattern becomes clearer when you look at Trump’s cabinet picks. His nominee to lead the DEA, Terrance Cole, has previously voiced serious concerns about marijuana dangers and linked its use to higher suicide risk among youth. His HHS general counsel nominee, Mike Stuart, is so staunchly anti-cannabis that prohibitionist groups openly celebrated his selection.
Even Robert F. Kennedy Jr., who previously supported legalization, has walked back his stance since being confirmed as HHS Secretary, stating he’s “worried about” high-potency marijuana and deferring to the DEA on rescheduling.
When you stack the regulatory deck with cannabis skeptics, you’ve telegraphed your true intentions no matter what you said on the campaign trail.
Here’s what I’ve been saying all along: meaningful cannabis reform was never going to come from the White House, regardless of who occupied it. The DEA will never willingly relinquish its power, and politicians will always prioritize easier wins over controversial reforms.
The only real path forward is through Congress completely removing cannabis from the Controlled Substances Act. Full stop. No rescheduling, no administrative reviews, no half-measures. Cannabis needs to be descheduled entirely, returning regulatory authority to the states where it belongs.
But while we push for that goal, the real revolution continues on two fronts.
First, state-by-state legalization marches forward. Despite federal inaction, 38 states have medical marijuana programs, and 24 states plus DC have legalized adult use. Each new state that joins the ranks weakens prohibition’s grip and demonstrates the failure of federal policy.
Second, and perhaps more powerful, is what I call “mass defiance of an unjust law.” Every day, millions of Americans peacefully consume cannabis in direct violation of federal law. They grow it in their homes, share it with friends, and build communities around it. This civil disobedience at scale is perhaps the most effective weapon against prohibition.
The federal government simply doesn’t have the resources to enforce cannabis prohibition against a population that increasingly rejects it. When enough people break an unjust law, the law itself becomes unenforceable.
I hate to say I told you so, but… I told you so. The rescheduling promise was never going to materialize, regardless of who won the White House. It was a political mirage, designed to attract voters while requiring minimal commitment.
But don’t mistake my cynicism about federal action for pessimism about our cause. Cannabis reform is happening – it’s just happening from the ground up rather than the top down. Every state that legalizes, every municipality that decriminalizes, every voter who demands change, and yes, every person who peacefully consumes despite prohibition is part of this unstoppable movement.
The lesson here is simple: Don’t put your faith in presidential promises or administrative processes. Put it in your local ballot initiatives, your state legislators, and your own power to reject unjust laws through peaceful non-compliance.
Cannabis prohibition is dying, not because presidents commanded it, but because we the people have decided it must end. That’s the real power in our democracy – not the fleeting promises of politicians, but the sustained will of the citizens.
So next time a candidate promises to fix cannabis laws, remember this moment. Then go out and fix them yourself, one vote, one state, and one act of principled defiance at a time. That’s how real change happens in America, and that’s how we’ll finally end cannabis prohibition once and for all.
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Cannabis News
Why Quitting Alcohol or Weed Won’t Heal the Pain That Caused You to Start Using Them in the First Place
Published
2 days agoon
April 5, 2025By
admin
Quitting Won’t Fill the Hole
There’s a pervasive notion that floats around recovery circles—this idea that once you kick your habit, everything will magically fall into place. The clouds will part, the birds will sing, and suddenly life will be worth living again. While it’s true that being addicted to a “thing,” whether substance or act, eventually tallies up consequences that weigh heavy on our souls, the math isn’t quite as simple as “remove addiction, add happiness.”
I’ve watched countless cannabis enthusiasts (and addicts of all stripes) fall into this trap. They sit in circles, eyes gleaming with hope as they declare, “If I could only quit, then everything would be better…” But they’re missing something crucial—their addiction isn’t the source of their discontent; it’s merely a symptom of something deeper.
Addiction, at its core, is a means of dealing with something we cannot name or are desperately trying to avoid. It’s the bandage we slap over a wound without cleaning it first. The cannabis, the alcohol, the gambling, the endless scrolling—these aren’t the disease itself but rather the body’s misguided attempt at self-medication.
Here’s the uncomfortable truth that most recovery programs don’t emphasize enough: if you don’t do the real healing, even if you manage to white-knuckle your way through quitting one addiction, you’ll inevitably find something else to cover that gaping wound. Maybe you’ll trade joints for junk food, or bongs for binge-watching. The face of the addiction changes, but the role it plays remains constant.
Let’s take a deeper dive into this cycle and why simply quitting isn’t enough to truly heal.
First, we must acknowledge that when it comes to pain and addiction, everyone’s journey is unique. What feels like an insurmountable mountain to you might be a speed bump to someone else, and vice versa. There’s no universal scale for suffering, which makes navigating these waters all the more complex.
However, across all these varied experiences, there’s a common trap I’ve seen ensnare countless individuals—what I call the “If/Then Fallacy.” It’s the belief that one singular thing is the root cause of all our discomfort. This is where addicts often say, “If I can only kick this addiction, then my whole life would be better.” While this may seem logical on paper, it’s a deeply flawed perspective.
The real issue rarely lies with the substance or behavior itself but with something deeper—something the addiction is helping us avoid or cope with. Whether it’s trauma, depression, anxiety, or simply the existential weight of being human in an increasingly disconnected world, there’s usually a wound beneath the bandage.
Furthermore, the “If/Then” scenario places your healing, joy, and accomplishments in a fictional future state. “If I stop smoking weed, then I’ll finally have the motivation to start that business.” “If I quit drinking, then my relationship will improve.” These statements create a dangerous binary—because when the “if” is satisfied but the “then” doesn’t materialize, where does that leave you? Often, it leads to “If that didn’t work, then what’s the point of trying anything?”
This thinking creates a perfect setup for relapse or substituting one addiction for another. After all, if quitting didn’t magically transform your life as promised, why continue to deny yourself that temporary relief?
If you’ve been considering quitting cannabis or any other addiction, and you believe it to be the sole source of your unhappiness, I strongly urge you to reconsider your framework. The cannabis, or your relationship with it, is likely just a mask for your real pain. If you want to truly liberate yourself from the burden of addiction, you need to develop the capacity to sit with your pain, examine it, and cultivate joy despite it—not because it disappeared.
This article was inspired by a post I came across while scrolling through Reddit the other day—one of those moments where someone’s raw honesty stops you mid-scroll. A 32-year-old man shared that after smoking cannabis and drinking 4-6 beers daily for nearly his entire 20s, he had finally managed to quit both. No cannabis for almost six months, no alcohol for three. A significant achievement by any measure.
Yet instead of the transformation he expected, he felt “MISERABLE.” Despite taking medication for ADHD and anxiety, and despite removing substances that conventional wisdom says should improve his mental health, he felt no positive change. In fact, he felt worse, as if he’d “stopped doing things that were fun for me, or at least making life bearable.”
His post ended with a plea that broke my heart: “Is this just how I’m going to feel now? Does this go away eventually?”
This redditor’s experience perfectly illustrates the point—even when you manage to power through the physical and psychological challenges of quitting an addiction, your mental and spiritual state doesn’t necessarily transform as a result. His baseline remained exactly the same, perhaps even dipping lower without the chemical crutches he’d relied on for so long.
When you’re changing habits but not experiencing the promised benefits, it’s a clear sign that your discomfort or pain isn’t primarily coming from the substance. The cannabis or alcohol wasn’t creating your misery—it was masking it, providing temporary relief from a deeper issue that remains unaddressed.
This is something we all must consider when facing our compulsions. If you find yourself in a situation where you want to stop a behavior but simply can’t, it might be time to look deeper. Ask yourself, “Why do I do this activity?” And then ask “why” five more times, each answer digging a layer deeper toward the root cause.
Why do I smoke cannabis every night? Because it helps me relax. Why do I need help relaxing? Because my mind races with anxiety. Why does my mind race with anxiety? Because I’m worried about my future. Why am I worried about my future? Because I don’t feel secure in my career path. Why don’t I feel secure in my career path? Because I never really chose it—I fell into it. Why does that bother me? Because I feel like I’m not living authentically or pursuing my true passions.
Once you’ve excavated to this deeper level, you can begin to address the root causes directly. Perhaps the issue isn’t the cannabis at all, but rather that you need to reassess your career path or find meaning outside of work. Without this deeper work, quitting the substance becomes an exercise in willpower rather than healing.
Your addiction isn’t necessarily the root cause of your issues—it’s often just the most visible symptom. If you’re depressed, anxious, or feeling lost, it’s not primarily because of the substance; it’s because of something deeper that the substance helps you manage or forget temporarily.
Unless you actually do the internal work on these matters—examining your pain, seeking appropriate mental health support, rebuilding healthy relationships, finding meaning and purpose—no matter what you quit or how long you stay “clean,” you’ll likely find yourself seeking new ways to shield yourself from the pain. The prison isn’t cannabis or alcohol; it’s the unhealed wound those substances help you endure.
If you’re struggling right now, it’s absolutely important to seek help. That might mean therapy, support groups, or speaking with a healthcare provider about potential underlying mental health conditions that need treatment. But alongside that external support, commit to the honest and difficult work of looking inward. Ask yourself what you’re truly trying to avoid when you reach for that joint or that drink.
At the end of the day, we all have our struggles. If yours involves cannabis at this point in your life, there’s no judgment here. I’ve been there myself. But I’ve also learned that true healing rarely comes from simply removing something from your life—it comes from adding understanding, self-compassion, and addressing the real gaps in your heart and mind that the substance was never capable of filling in the first place.
The void can’t be filled by quitting. But quitting might just give you the clarity to finally see what the void truly needs.
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Cannabis News
Scientists Now Think That One Compound in the Cannabis Plant Can Replace All Opiates
Published
4 days agoon
April 3, 2025By
admin
Which Cannabis Compound Do Scientists Think Can Replace Opiates?
…And Why This Is Important
Opiates are a type of pharmaceutical drug that’s been made from the opium poppy plant. While it’s somewhat a ‘natural’ substance that’s been extracted from the fibers and sap of the opium poppy plant, these are extremely dangerous sedatives that act on the central nervous system. However, there are completely synthetic opioids as well, which are manufactured entirely in laboratories.
Famous examples of well-known and widely-used opiates today include heroin, codeine, and morphine. They all work similarly, binding to the brain’s opioid receptors and users feel a drastic reduction in pain. It also causes users to feel euphoric, drowsy, or sleepy. Common side effects include constipation and nausea.
Because opiates are powerful for dulling one’s pain perceptions, they have become commonly prescribed by doctors and hospitals for pain relief. That said, opiates have become one of the world’s most addictive, dangerous, and fatal drugs – and you can get prescribed it right by your very own physician. Repeated use of opiates can easily lead to dependence and addiction, and eventually consuming high doses can drastically slow down breathing, and cause brain damage, or even death.
Since doctors still keep prescribing opioids, this has resulted in the deadly Opioid Epidemic, which has killed thousands of people. It’s a worrisome public health crisis, most especially because of fentanyl, an illegally manufactured opioid which is said to be 50 times more potent than heroin.
Could The Answer To The Opioid Epidemic Lie In Cannabis…Terpenes?
The past few years have shown that cannabis legalization is critical for surviving the opioid epidemic, and reducing overall opioid consumption.
The results of a recent research paper, which builds on past studies conducted by Dr. John Streicher, who is a member of the Comprehensive Center for Pain and Addiction, reveals fascinating findings. According to Streicher, cannabis terpenes were found to provide relief in inflammation models as well as on neuropathic pain caused by chemotherapy.
For the study, Streicher and his research team analyzed 4 kinds of terpenes that are found in mid to high levels in Cannabis sativa plants: linalool, geraniol, beta-caryophyllene, and alpha-humulene. They discovered that each terpene produced significant pain relief among mice subjects with fibromyalgia and post-operative pain, and among the terpenes, geraniol was found to be the most powerful.
“Our research is showing that terpenes are not a good option for reducing acute pain resulting from an injury, such as stubbing your toe or touching a hot stove; however, we are seeing significant reductions in pain when terpenes are used for chronic or pathological pain,” he said. “This study was the first to investigate the impact of terpenes in preclinical models of fibromyalgia and post-operative pain and expand the scope of potential pain-relieving treatments using terpenes,” Streicher said.
Cannabis terpenes are the compounds responsible for the aromatic profile of each strain; they are located in the plant trichomes. Not only do they contribute to each strain’s unique flavor and odor, but they also have valuable therapeutic and medicinal benefits. There are around 150 kinds of terpenes known today, though in the entire plant world, there are known to be some 20,000 terpenes.
Understanding the therapeutic benefits of terpenes is incredibly valuable also because they don’t contain THC (tetrahydrocannabinol), the compound in marijuana that gets you high.
“With fibromyalgia, there isn’t much of an understanding of what the pain state is, and there are not a lot of great options for treating it,” explains Streicher. “Our findings show that terpenes may be a viable treatment option for fibromyalgia pain, which could potentially have a large impact and make a difference for an under-treated population.”
Other Studies
This is not the first time that cannabis terpenes have been found to demonstrate excellent pain-relieving properties. It must be noted that just like what Streicher says, terpenes seem to do better with chronic pain management, instead of acute pain management.
Another study from 2024, which was published in The Journal of the Association for the Study of Pain, was conducted by researchers at the University of Arizona and the National Institutes of Health. The investigators analyzed the analgesic properties of different terpenes including geraniol, humulene, linalool, pinene, and caryophyllene among mice subjects with chemotherapy-induced peripheral neuropathy.
According to the researchers, all the terpenes delivered analgesic effects that were equivalent to around 10 mg/kg of morphine. It was also interesting to note that administering both morphine and terpenes together at low doses resulted in ‘enhanced’ pain-killing effects.
“Together these studies identify cannabis terpenes as potential therapeutics for chronic neuropathic pain,” said the investigators.
There have also been other studies that have found that combining cannabis with opioids can indeed provide long-lasting pain relief. It comes with the added benefit of reducing opioid doses needed for effective pain control. This phenomenon is called opioid-sparing. These types of protocols can be beneficial for patients who suffer from severe, chronic pain caused by cancer, arthritis, joint problems, fibromyalgia, diabetes, post-surgical pain, migraines, nerve damage, and so much more.
Conclusion
Learning more about the pain-killing properties of terpenes is extremely valuable for the medical community, patients, and even society as a whole. We can all do with less opioid addictions because it has torn families apart, and caused the deaths of thousands of people.
Terpenes, or cannabis in general, offer a natural and safe alternative that can be complementary to other pharmaceutical treatments designed to reduce pain.
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