Pioneering Advice

Bart Schaneman Finance, Industry, Regulations Leave a Comment

In the past five years, Colorado’s cannabis executives—both plant-touching and ancillary—have learned enough about doing business in a new recreational market to write textbooks on the topic. The Centennial State made history when it launched the world’s first adult-use marijuana market on Jan. 1, 2014. Along the way, the state’s marijuana pioneers have experienced plenty of growing pains, lessons that can be applied to other emerging adult-use markets.
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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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Know your Regulations, Know your Labels

Kristen Savage Industry, Regulations Leave a Comment

Ability to move quickly, accurately, and competitively is the lifeblood of cannabis purveyors. Timely compliance in such areas as labels and packaging is critical to staying in business; agility in grabbing a competitive edge is crucial to profitability. To help make that happen, cannabis-savvy label experts must be able to provide near real-time information and clear, straightforward guidance to ensure full and timely compliance. With labeling and packaging regulations constantly changing across the land, getting and staying current is much easier said than done.
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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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