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Acquisition-Side Due Diligence in The Legal Cannabis Industry: Approach and Expectations for Both Sides

By Greg Chin, Kevin Michaelan and Jeffrey Michelson, Partner Continuing with the topic of industry trends from our last post, we explore the art of acquisition-side due diligence from full-scope financial and tax to limited-scope tax-only engagements.  We’ll look at what to expect and how to approach it.  Although commonly geared toward the investor/acquirer, i.e., […]
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Planning for the Coming Consolidation in the Cannabis Industry

By Michael Harlow, CPA, Partner In today’s Cannabis marketplace, we continue to hear one overarching theme.  The industry buzz on everyone’s lips is about “the future consolidation of the industry. This is driven by several factors: strong customer and revenue growth for retailers, price compression for wholesalers, an expected change in the legal landscape, new […]
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The Impact of Regulations on Price

By Yona Torres, New Frontier Data Contributing Editor In the 16 months since California legalized marijuana, cannabis prices in some California market sectors have plummeted 75%, according to the Washington Post. This steep decline, paralleled in Colorado, Oregon and Washington, is a product of the number of newly-licensed cultivators and the regulations that guide them. […]
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Business Challenges Intensify Amid Falling Prices in California

By J.J. McCoy, Senior Managing Editor for New Frontier Data What We Have Learned: Falling prices in the expanded California markets will drive operators to focus on per­formance efficiency and cost savings even while trying to establish branding and consumer engagement. (Sept. 10, 2017) -- As the burgeoning cannabis market has started to mature in markets […]
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Cannabis Investors Would Do Well to Keep These Three Tenets in Mind

Mitch Baruchowitz, Managing Partner at Merida Capital Partners What We Have Learned: Focus on adoption and make sure that investments have crossed the “fragmentation gap”, find management teams who have direct experience with the types of challenges they will face in their cannabis enterprise, and look for companies that serve large addressable markets that naturally […]
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An Rx for Returns: Medical Markets Remain Sound for Investment in 2018

By New Frontier Data staff analysts What We Have Learned: With an annual GDP that would rank by itself as the world’s sixth-largest national economy, California will best the top three U.S. medical cannabis markets by revenue in 2018. Oct. 1, 2017: Next month will mark a year since millions of Americans successfully voted to […]
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Florida’s Failsafe Measures Proved Sound Despite Hurricane Irma’s Impacts

By J.J. McCoy, Senior Managing Editor for New Frontier Data What We Have Learned: Florida’s nascent cannabis industry weathered the storm in better stead than many other traditional businesses. Sept. 17, 2017: Though Hurricane Irma last weekend legitimately threatened to be disastrous in Florida, catastrophe was largely averted despite storm-surge flooding and widespread power outages felt [...]
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Maine’s Adult Use Market Stalled by LePage’s Broken Campaign Pledge

By J.J. McCoy, Senior Managing Editor for New Frontier Data What We Have Learned: At the start of November 2017, Maine Republican Governor Paul LePage vetoed the state’s pending bill to establish rules for implementation of an adult use cannabis program. Maine’s governor ignored his own 2014 re-election campaign pledge, and subsequently introduced political and practical uncertainty into […]
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Cannabis Businesses’ Bane of 280E

By Michael Harlow, CPA, Partner What We Have Learned: Ancillary, non-plant-touching businesses in the industry enjoy a variety of federal and state tax opportunities and incentives often not utilized to maximum benefits. To quote Benjamin Franklin, “In this world nothing can be said to be certain, except death and taxes,” and people in the cannabis […]
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What Proposed Tax Cuts Mean for Cannabis: Only a Bill?

By Selvan Boominathan, JD, LLM What We Learned:  A December 2017 review of the proposed Republican tax cuts suggested how politicians would not touch 280E, but still help the legal cannabis industry. In a prior post, we discussed how federal income tax applies to cannabis businesses and the huge burden imposed by Section 280E.  You […]
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