Finding Investors: Accredited Investors

John Abernathy Finance, Industry, Regulations Leave a Comment

As mentioned in the previous article, there are many regulations cannabis companies should consider as they begin raising funds.
Generally, any offer to sell securities must be registered with the Securities and Exchange Commission (SEC) unless it qualifies for an exemption. The two most common exemptions used are found at SEC Regulation D: Rule 506(b) and Rule 506(c).
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Finding Investors: Raising Funds

John Abernathy Finance, Industry, Regulations Leave a Comment

As the legal cannabis industry expands through the United States, many investors are looking to invest in the industry. This is good news for small businesses looking to enter the cannabis industry or expand their current business. What cannabis CEOs may not know is that raising equity may be considered a securities offering and subject to Securities Exchange Commission rules and regulations. What do cannabis CEOs need to know about fundraising to ensure compliance?
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California Cannabis Business Conference

Tess Hart Finance, Industry, Regulations, Social Leave a Comment

Earlier this week, I had the privilege of attending the California Cannabis Business Convention. It was such an empowering and educational experience for me! The event was full of people who are passionate about cannabis and making sure the industry succeeds. Sometimes being surrounded by so many people can make one feel overwhelmed, but this event was very different for me. All the people there were hoping to find answers to the many questions they have about the cannabis world, and I felt very at home with this crowd.
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CEO Predicts Legal Cannabis Industry Banking

Sara Somerset Finance, Industry Leave a Comment

One of the biggest issues currently facing the cannabis industry is the lack of legal access to banking. Cannabis companies such as dispensaries are currently being creative with cash-only businesses or using cryptocurrency and blockchain technology, to skirt around current federal regulations which bar them from banking.
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Section 280E and the Impact of Tax Reform

Christopher Madison Finance, Industry, Regulations Leave a Comment

Cannabis companies are subject to Section 280E and would benefit from an accounting or inventory method that results in the largest allowable amount allocated to costs of goods sold. This article clearly defines Section 280e, and explains the importance of understanding the provisions of Section 471 (General rule for Inventories) and Regulation/ Section 1.263A (Uniform Capitalization of Costs). A consistent formula allowing capitalization of indirect and direct costs (Section 263A), full absorption of inventory (Setionc 471) can increase your cost of goods sold and lower your taxes.
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