Insolvency Issues in Cannabis

Jason Rosell will take part in a panel discussion sponsored by the Northern California Chapter of the Turnaround Management Association on the cannabis industry and insolvency laws. Federal illegality keeps cannabis businesses from accessing traditional banking and financing, making raising capital and managing cash flow difficult. The high cost of compliance with state and local regulations, excise taxes, and lack of access to traditional banking platforms have made it challenging for cannabis businesses to operate profitably. Although largely denied access to the bankruptcy courts, some cannabis businesses have sought out restructuring options and bankruptcy alternatives.

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