Global X, an ETF provider, provided this thorough but succinct survey highlighting the progress toward cannabis legalization in U.S. states.; this is part 1 of a 3-part series, so more to come. As we’ve noted before, cannabis valuation issues are intertwined with regulatory and legalization issues, an interesting, but not necessarily unique
Cannalaw Conference Wrap-up: What’s Next for Marijuana?
The conference closed with a look ahead to the future of the cannabis industry, patent issues, and emerging psychedelic market. What will we see with regards to patent enforcement? Only two cannabis related lawsuits have been filed to date, one that died. However, there is speculation that
The M&A panel at yesterday’s Cannalaw conference addressed what valuation techniques are being used to determine the purchase price of a marijuana company. While in recent years the traditional valuation metrics would normally be utilized – whether multiples of sales, revenues or EBITDA, for instance – the current market is experiencing a supply/demand imbalance, as
In this new post, major asset manager Alger spotlights the growing cannabis sector and underscores investors’ opportunities alongside increased public support and favorable legislative changes.
For more on factors affecting cannabis business valuation, including regulatory changes and legalization pushes, see our topic area.
Given the rapid developments in the cannabis space — with 15 states having now legalized recreational marijuana and 21 states allowing medicinal use — approaches to the valuation of cannabis companies continues to evolve. In this new piece by EisnerAmper, the firm makes the case for utilizing any combination of an Asset Approach, Income
As reported in this Law360 piece, “Illegality Nixes Most of Marijuana Investment Scheme Suit,” a Colorado judge dismissed an investor’s fraud claim against the principal behind an investment vehicle whose strategy revolved around the Colorado cannabis industry. The court found that the relief sought would violate the Controlled Substances Act, underscoring the perils of
In this interesting piece on cannabis valuation, Oregon Cannabis: What is My Partial Marijuana Dispensary Ownership Interest Worth?, Harris Bricken takes a look at the value of a less-than-100% interest in an Oregon marijuana dispensary, and what may happen if an LLC needs to value the interest of a former member after a forced
As reported by Law360 here, state regulators in California have proposed regulations designed to decriminalize under state law activities by banks and accountants working with the cannabis industry, purporting to ease access to financial services for marijuana businesses. Such state legislation appears more symbolic than realistic, however, as most banks will continue to refuse
This industry round-up by Global X ETFs surveys the near-term challenges and longer-term prospects for cannabis companies. The piece examines several industry tailwinds, including “trends in new dispensary openings, a shift to e-commerce, and the introduction of new consumable forms of cannabis” fueling growth across North America, as well as further legalization efforts amid the
As we’ve mentioned, valuation professionals, accountants and investment banks have become increasingly focused on trained on the valuation of cannabis companies and assets, with EY preparing their insights on cannabis valuations here. This piece addresses regulatory and transactional developments in the US as well as Canada.