Historically, cannabis businesses have been stood up with equity investments from ownership and debt financing through creditors. Access to capital markets has been strained by a number of conditions both within and outside of the cannabis industry. Debt financing will continue to be the predominant source of funding for the cannabis industry to expand and improve on operations. From the regulator’s perspective, there are two key challenges that exist in the debt financing model. First is a lack of transparency into the capital funding the industry, as most agencies do not have the resources or capacity to look into the creditor’s financing the industry. Second, licensees may not avail themselves of bankruptcy protection to reorganize or restructure, resulting in costly receivership that requires a tremendous mount of time and resources by regulatory agencies and state attorneys general offices.
The CTrust Solution for Regulators
Capital they can trust.
Expanded oversight and transparency.
Reduced time and resources.