Banking and Finance Archives

Navigating the complexities of cannabis fundraising can be daunting, especially when it comes to understanding SEC accredited investor rules. Essentially, the SEC’s rules for accredited investors in cannabis fundraising stipulate that individuals or entities must meet specific financial criteria to invest in private cannabis businesses, ensuring that they can bear the potential risks involved. In this article, we’ll break down these regulations and provide a clear roadmap for cannabis entrepreneurs and investors alike.

Business Meeting Focused on Cannabis Investment

Banking and Finance Compliance

Navigating the Overton Window: The Future of Cannabis Banking and Business Processes

May 23, 2024 Editorial Staff Compliance

The landscape of cannabis banking and business operations is rapidly evolving, mirroring shifts in public opinion and regulatory frameworks. As these changes continue to unfold, stakeholders within the industry are finding new ways to navigate the complexities of financial services, compliance, and market dynamics. The concept of the Overton Window provides a valuable lens through which we can understand these transformations. It highlights not just where current policies stand but also maps out potential future directions as societal norms and legal boundaries evolve.

Capital Legal

Cannabis Fundraising: Seven Key Takeaways from the SEC’s New Accredited Investor Rules

September 22, 2020 Editorial Staff Cannabis Fundraising

The SEC revised rules on accredited investors that will let more book-smart people and insiders invest in private companies. And it will give private marijuana and hemp companies access to seed capital that often comes with fewer strings than traditional bank and institutional investor financing arrangements.

Banking and Finance

FDIC Chairwoman McWilliams Remains Consistent Regarding Cannabis Banking

June 23, 2020 Editorial Staff Cannabis Banking

McWilliams stated that she thought bankers would be “OK” with regulators if they conduct due diligence that ensures licensed entities comply with state regulations and follow the 2014 FinCEN guidelines, including the filing of suspicious activity reports (SARs).

Capital

Cannabis Companies Checklist for Raising Money Under Rule 506

June 15, 2020 Editorial Staff raising capital, Rule 506

Rule 506 provides two distinct exemptions: Rule 506(b) and (c). Unlike Rule 506(b), an issuer relying on Rule 506(c) can engage in general solicitation when marketing its offering. Certainly, there are traps for the unwary when proceeding under either exemption, as some cannabis companies have unfortunately discovered in recent years.

Capital

5 Keys to Prospering as a Cannabis Multi-State Operator

June 3, 2020 Editorial Staff Cannabis MSO, Cannabis Multi-State Operator

To prosper in these tough times, cannabis muti-state operators need to follow these 5 principles:
1. Have a two year capital and cash-flow cushion
2. Strong competitive positions in markets.
3. Operational excellence.
4. An attainable business model with a path to profitability.
5. An expansion driven by realistic expectations surrounding a return on investment.

Capital

American Cannabis Stocks Spring 35% in May

June 1, 2020 Editorial Staff American Cannabis Stocks

Following twelve consecutive monthly declines and then a modest gain in April, the American Cannabis Operator Index extended its rally off of its all-time low set in March, increasing 34.7% to 30.20 during May

Capital

Cannabis Industry Capital Concerns

May 29, 2020 Editorial Staff Capital

This year’s initial pullback on venture funding was at first an acknowledgement that no market can support endless quarters of negative company earnings, regulatory uncertainty, and legal challenges. Now that COVID-19 has shaken the world, it’s clear the cannabis industry will have to respond in unique ways to finding capital, too, as investors remain cautious.

Banking and Finance

Louisiana Lawmakers Move Closer to Cannabis Banking Reform

May 22, 2020 Editorial Staff Cannabis Banking Reform, Louisiana Marijuana Reform

Louisiana lawmakers advanced three marijuana reform bills that includes legislation that would dramatically expand the state’s medical cannabis program and offer protections for banks that service marijuana businesses.

Banking and Finance

Paycheck Protection Program: Certain Tax Issues Involving Loan Forgiveness

May 20, 2020 Editorial Staff

if a business borrows funds under a PPP loan, spends the loan proceeds in the manner prescribed by the CARES Act and SBA guidance, and the PPP loan is forgiven, it is not clear whether these expenditures would be deductible for federal income tax purposes.

← Previous

CannaBizCentral

Banking and Finance

Cannabis Fundraising: Understanding SEC Accredited Investor Rules

Navigating the Overton Window: The Future of Cannabis Banking and Business Processes

Cannabis Fundraising: Seven Key Takeaways from the SEC’s New Accredited Investor Rules

FDIC Chairwoman McWilliams Remains Consistent Regarding Cannabis Banking

Cannabis Companies Checklist for Raising Money Under Rule 506

5 Keys to Prospering as a Cannabis Multi-State Operator

American Cannabis Stocks Spring 35% in May

Cannabis Industry Capital Concerns

Louisiana Lawmakers Move Closer to Cannabis Banking Reform

Paycheck Protection Program: Certain Tax Issues Involving Loan Forgiveness