What’s A Cannabis Company To Do While Waiting For Banking Reform?

Plus, what's next for Canadian cannabis companies

January 31, 2025

You're receiving this email because you're subscribed to Cannabis Daily from Benzinga. To manage your subscription, click the link at the bottom of this email.

Happy Friday to all from Javier Hasse and Maureen Meehan. Join us as we say farewell to January, which was named for the Roman god Janus, known as the protector of gates and doorways, which symbolize beginnings and endings.

So, let’s have look at what ended and what began in the cannabis industry.

It seems like ages since Joe Biden left the White House ending any hope for cannabis pardons or commuted sentences, so that door is closed. As yet we don’t know which door, if any, the new Trump administration will open to make the cannabis industry happy, healthy and prosperous.

Fortunately, the industry is still chugging along despite certain setbacks. Surely, we all know which of them continues to be most problematic. If you said the lack of cannabis banking, go to the head of the class.

In today's issue:

No Banks? No Problem: How One Company Is Fixing The Cannabis Industry's Capital Bottleneck

A thorn in the collective side of marijuana companies trying to make it in an ever more competitive market is the lack of access to banking and financial services.

Javier Hasse tells the story of a company that has been consistently providing financial help to cannabis companies large and small. FundCanna is the name and its founder and CEO is Adam Stettner.

Stettner’s response to the cannabis industry's financial challenges has been to use his own vast experience to create financial products for the imminently underserved cannabis industry.

Whitney Economics revealed in a 2022 study that over 70% of licensed cannabis companies, including ancillary businesses, identified the “lack of access to banking or investment capital” as their top challenge. Alas, little has changed since then. Hence, FundCanna and Adam Stettner, please keep up the fabulous work.

Can Canada Maintain Its Cannabis Edge After Trudeau's Departure?

This is another question Javier Hasse looked into. After all, Canada was the second country in the world to fully legalize marijuana. The first country was Uruguay, in December 2013, under one of the hemisphere’s most fascinating presidents, José Mujica, but I digress. Back to Canada.

Hasse tells us that as PM Justin Trudeau prepares to step down, Canada’s cannabis industry faces a turning point. Trudeau's government not only legalized recreational cannabis in 2018, but also positioned Canada as a global leader in marijuana reform, being the first G7 nation to do so.

What’s happening now? Hasse says there’s a fairly real possibility that a new government under Conservative leader Pierre Poilievre could introduce concerns about policy stagnation and regulatory rollbacks, raising questions about what's next for the multi-billion-dollar industry.

Have a great weekend everyone and take a look at Benzinga’s recent stories. There’s something there for everyone.

BEFORE YOU GO

Were you forwarded this email? Click here to subscribe.

And be sure to check out our other newsletters:

Ring The Bell: Created for market enthusiasts by market enthusiasts, this twice-daily newsletter delivers top stories, fast movers, and hot trade ideas straight to your inbox. Subscribe here.

Future Finance: Where fintech, crypto, and the future of finance collide. Future Finance is a perfect lunch read packed with quick bites for industry enthusiasts. Subscribe here.

Real Estate Weekly: Ready to elevate your real estate game? This weekly newsletter provides actionable insights whether you are investing in REITs, owning property, or delving into the fast-growing world of fractional real estate. Subscribe here.

Advisor: Tailor-made for Financial Advisors, this weekly newsletter has industry-specific insights, analysis, and news. Subscribe here.

Tech Trends: Get the inside scoop on AI, the hottest gadgets, and mind-blowing tech trends. Subscribe here.