Publicly Traded Companies Losing Out On Marijuana Land-Grab

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Publicly traded companies have traditionally stayed away from marijuana. At the most, they have involved themselves in hemp-based products and ancillary markets such as grow equipment and real estate. Two pink sheet companies (trade on the over-the-counter markets only) now say that they are applying for licenses to grow medical cannabis (one in Nevada and another in Ontario), while another ...

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Beware the OTC Market

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The Securities and Exchange Commission has suspended trading in several marijuana-related companies, including Advanced Cannabis Solutions and Growlife. The reputation of publicly-traded marijuana firms was already shaky after the Financial Industry Regulatory Authority (FINRA) warned of “potentially fraudulent” marijuana companies last year. Advanced Cannabis says it all has to do with a rogue shareholder who apparently sold shares illegally. “We’re ...

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Banking and Marijuana Merchants

Mobile shopping character

MyECheck (OTC Pink: MYEC), a provider of mobile payment processing by means of electronic checks, has a new software licensing agreement with Itonis, Inc. (PINKSHEETS:ITNS) to handle point of purchase transactions via mobile apps for medical marijuana sales. This does not mean that dispensaries throughout the country will suddenly all be able to accept checks. The problem is this: Echecks ...

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The Potential of Cannabis in Business

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Medical marijuana is legal in 20 states including New Jersey as well as Washington D.C.. Two states – Colorado and Washington – have approved sales of the drug for recreational use. Other states including New York have unveiled plans to allow medical marijuana sales. The commercial promise of cannabis is not just in selling the drug – estimated to be ...

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Prohibition Premium

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The legal marijuana movement has put a premium price on a number of companies with cannabis connections. Shares of companies in several marijuana-related businesses have shown huge gains over the past few months in the euphoria following legalization in Colorado and Washington. Medbox (MDBX) is one example. Shares have nearly quadrupled n 2014 despite a host of accounting and legal ...

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Banking Questions Remain

Cannabis sample and a stack of US money

Banking guidance issued by the federal government has left the cannabis industry with less than it had hoped. Many mainstream financial institutions say they need to see a change to marijuana’s federal classification under the Controlled Substances Act before they will be comfortable with the industry. In the days following the joint policy memos, major U.S. institutions continue to refuse ...

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Financial Services and Cannabis

Sheet of a hemp on a background of money

The U.S. Justice Department has announced new federal guidelines for providing financial services to marijuana-related businesses under the Bank Secrecy Act: “BSA Expectations Regarding Marijuana-Related Businesses.” The guidelines call on financial institutions to check for state licensing; because California lacks a state licensing system it’s questionable whether these guidelines can apply in California—where only local ordinances regulating medical marijuana collectives,. ...

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Funding Portals

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The proposed SEC rules consider crowdfunding portals “issuers,” meaning that the portals will be held liable for businesses raising money on their sites. If a business campaign to raise money is fraudulent, the portal will be held responsible. At the same time, portals are not allowed to give “investment advice.” “The proposed rules put funding portals between a rock and ...

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Crowdfunding Growing in the States

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As federal equity crowdfunding legislation languishes on Capitol Hill, a growing number of states have pressed forward with their own equity crowdfunding legislation. States where equity crowdfunding legislation has been passed or is likely to be passed very soon include North Carolina, Georgia, Kansas, Wisconsin, Washington and Michigan. Equity-based crowdfunding is where an individual invests into a company and in ...

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