Articles Tagged with California marijuana

When your business is legal, but you can’t access a bank for everyday functions, you have no choice but to become an all-cash venture. There is perhaps no industry that knows this woe better than those in the business of marijuana. But some are now finding that even those businesses that never actually touch marijuana may have banking headaches. money

The L.A. Times recently reported on a local businesswoman who alongside her partner launched a packaging company that caters to the cannabis industry. They produce containers, bags, logos, labels, custom-printed jars and boxes. They currently have about three workers and are preparing to bring on three more. They provide marketing and branding assistance to growers and distributors, and the owner describes it as “all very upscale.” The biggest problem, however, has been the banking.

She explained how she met with a single accountant last year who informed her she would likely only be paid in cash and that her workers and suppliers would need to be paid in cash as well. Payroll, sales and income taxes – all of it has to be done in cash. The accountant advised her to stash the cash under her mattress and then somewhere down the line find a time to make a large deposit into her bank account. When she told him that sounded illegal, he shrugged, saying that’s how everyone does it.  Continue reading

The marijuana industry in the U.S. is slated to become a $20 billion industry in the next four years. However, we could change course on that very rapidly depending on the approach taken by our new new commander-in-chief and those he has placed in top positions of power. There are millions of dollars and many businesses at stake. newspaper

There is reason to believe Donald Trump may lean toward favoring states’ rights on the issue. Others believe he may at the very least support medical marijuana rights. However, we also know that Trump has shown no problem walking back from several of the promises he made on the campaign trail, so it’s not illogical that he would shy away from statements in support of medicinal marijuana. On top of this, there is concern given that his U.S. attorney general pick Jeff Sessions is a vocal opponent of any form of marijuana legalization, refusing to concede even the benefits of the drug as a form of medicine.

Still, states have already taken incredible measures to pass laws and initiate regulation. What impact could Trump really have on the industry? It turns out a lot. Here are four scenarios we might see over the next four years.  Continue reading

Legal marijuana has resulted in an uptick in supply, which, as Bloomberg News recently reported, has dampened the profits of marijuana growers, who are seeing the price of pot plunge. However, as the report indicated, this may be an opportunity for companies that are able to carve out a niche by cutting production costs for cultivators. greenhouse

Once-illicit growers have been banking on some degree of legalization, investing millions in facilities and factors that can help in the growth and processing of the drug. But there has been stiff competition in the marketplace, and that has driven down the average cost that wholesalers are willing to pay – now down to about $1,300 a pound in Denver since January 2014, when sales to all over-21 adults became legal in Colorado. That’s a nearly 50 percent drop in a span of just two years.

As supply of the drug has ballooned, growers are now looking to invest in the latest-and-greatest technology to help them cut down on their turnaround time. Any marijuana business that can help growers focus on efficiency is going to find themselves an edge in the market.  Continue reading

A recent audit of the U.S. Postal Service indicates there are few safeguards to prevent against internal theft of packages containing marijuana. box

The U.S. Postal Service employs some 500,000 people nationally, and most do their job with expedience and integrity – often despite having to deal with the public in their less-than-likable moments. Still, an investigation was launched by the service’s inspector general’s office after several reports of theft of so-called “pot mail” surfaced.

It’s important to point out here: The U.S. Postal Service controls the general mail and that is overseen by the federal government. Even though California, Colorado, Washington state and others have approved medicinal and recreational marijuana laws, it is illegal to mail these items via the postal service. Doing so could lead to a felony charge. Even private carriers, such as FedEx, refuse to ship items that would otherwise be banned for transportation under federal, state or local laws, rules or regulations. What’s more, these private carriers have the option of calling police to report if there is a package suspected to contain marijuana. Private courier services might be less discerning in the kinds of packages they deliver, but marijuana delivery – even in states where recreational marijuana is allowed – is usually still illegal unless it’s done on the site of a licensed marijuana dealer. Continue reading

Colorado’s monthly marijuana sales tore through records this summer, reaching an all-time high in July of nearly $123 million. That accounts for sales of both recreational and medicinal marijuana, and it represents a 27 percent boost from the sales of July 2015.

Money in the form of many large bills

July marijuana sales also soared past the previous record, set in April 2016 (during a month that includes the yearly 4/20 marijuana holiday), which was $117.4 million. Medical sales accounted for about $41 million of that total, while recreational marijuana sales totaled about $77 million.

Meanwhile this July, sales of recreational marijuana in Colorado spiked at $83.8 million, according to the state’s department of revenue.  Continue reading