Banking Archives - Green Market Report

William SumnerWilliam SumnerApril 6, 2018
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Cannabis blockchain is coming to the Empire State. On April 6, 2018, Alternate Health (AHG), a software solutions provider specializing in the medical cannabis industry, announced that it is expanding its StatePass medical cannabis Electronic Medical Records (EMR) blockchain system into New York and that physician onboarding and initial service testing has already begun.

“We have already identified several cannabis physicians to begin service testing StatePass in New York, where they will use the EMR for their current cannabis patients and provide feedback so our programming team can optimize the system for statewide use,” commented Dr. Michael Murphy, Chairman, and CEO of Alternate Health. “Based on the positive feedback we have already received from physicians, we are confident that our presence in the New York market will expand rapidly.”

Currently, StatePass is the only EMR and blockchain enabled software platform on the market designed specifically for the medical cannabis industry.

Focused primarily on regulatory compliance and improving patient outcomes, physicians are able to personalize patient treatment options with built-in automated compliance reporting, which can be helpful in highly regulated medical cannabis states like New York. Patient information is recorded through a distributed blockchain ledger, making it extremely difficult to tamper with or steal patient data.

The company’s expansion into New York follows the initial roll-out of the original system, CanaPass, and FlorPass, which is specifically a software adaption for the state of Florida. Recently, FlorPass was endorsed by the American Medical Marijuana Physicians Association.

“Our New York team is working closely with physicians to familiarize them with the StatePass system and demonstrate how it can be a tremendous asset in enhancing their medical cannabis practices,” said Jay Briggs, Vice President of Operations for Alternate Health. “We are very excited to continue developing our network of physicians and industry experts as we deliver a best-in-class EMR solution.”


William SumnerWilliam SumnerMarch 7, 2018
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The world of blockchain just got a little bigger today. On Feb. 7, 2018, SinglePoint Inc. (SING) announced the soft launch of its SingleSeed payment bitcoin payments solution and provided an update on ongoing company operations.

Conceived of in 2014, the company initially held off on developing SingleSeed Payments due to a lack of market demand for cryptocurrency related products and services. Now that demand has caught up with the technology, SinglePoint has begun to fully commit to the blockchain/cryptocurrency market.

To serve this end, the company has taken several steps to shore up its blockchain brand, such as hiring serial entrepreneur Kevin Harrington to serve as spokesman for the company’s upcoming SinglePoint Cryptocurrency Exchange; which is expected to launch in the coming months.

Hoping to become as vertically integrated as possible, the company has entered a letter of intent with ORHub, Inc. to develop a private blockchain and has brought Venugopal Aravamudan, a tech industry veteran with more than 25 years of experiences, on to its board of directors.

The company has also begun developing, in collaboration with AppSwarm, its own cryptocurrency currency wallet, which will allow consumers and merchants to use to hold and utilize different currencies. Development of the wallet is nearing completion and should be pushed into testing within the next 10-14 days.

Outside of the cryptocurrency market, SinglePoint has been developing, once again in collaboration with AppSwarm, a cannabis delivery application called Oomy as well as a B2B e-commerce platform for the cannabis industry, dubbed SingleSeed.

The company is currently in the middle of its 2017 audit, being conducted by the auditing firm Turner, Stone and Company, and is expected to complete it within the next 30 days, upon which the company will file its Form-10.

“We are firing on all cylinders and pushing the boundaries to make SinglePoint a highly successfully, scalable company. I hope this breakdown of projects has provided the insight and confidence to our shareholders that we are heading in the right direction. We are happy to be in the position we are in and will continue to take advantage of the opportunities that present themselves,” said SinglePoint President Wil Ralston in a statement.


Debra BorchardtDebra BorchardtFebruary 6, 2018
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Treasury Secretary Steve Mnuchin testified during an appearance before House Financial Services Committee about the Financial Stability Oversight Council’s (FSOC) annual report. During his testimony, he addressed cannabis and banking saying, “We do want to find a solution to make sure that businesses that have large access to cash have a way to get them into a depository institution for it to be safe.”

He also said, “We are reviewing it with the intent not to take it down without a replacement.”
A copy of the clip can be watched here.

Robert Fireman, CEO of MariMed Inc, (MRMD) a firm which has established cannabis cultivation and dispensary facilities in 6 states and distributes branded precision dosed products in numerous states, voiced his support for government efforts to enable the cannabis industry to use traditional banking:

“Banks play a major role in all business.  Marijuana is classified as a Schedule I drug under the federal drug control regulations has been a barrier for most banks to provide needed financial services to the cannabis industry.  In many states, cannabis businesses cannot obtain banking accounts to make deposits or issue checks and wires for payables.  Most banks refuse to provide even secured loans to own and develop cannabis facilities.   Banks who have mortgages on commercial and industrial buildings consider it a default if these business owners lease any part of property to cannabis business.  Currently, having to deal with lots of cash presents security issues that other businesses do not have.  Conventional banking will be a great benefit to this emerging cannabis industry as it tries to become more mainstream in the 29 states that now have some form of legal cannabis.”

Here are some additional reactions from marijuana industry entrepreneurs and leaders

Wil Ralston, President of SinglePoint (SING): “This is a great step in the direction of enabling cannabis-based businesses to access to traditional banking. We believe this further legitimizes the industry and again shows the need for a solution in a heavy cash-based business.”

Bryan Meltzer, Partner at Feuerstein Kulick LLP: “Although far from concrete, Secretary Mnuchin’s testimony today was encouraging because he appears to understand that limiting access of state-compliant cannabis businesses to the banking system is not in the federal government’s interest and is harmful to public safety. We hope that Secretary Mnuchin follows through with his testimony by causing the Treasury to adopt guidance and regulations that add some protection and certainty to banking in the cannabis space, but ultimately this is an issue that will require Congress to act on.”

Arnaud Dumas de Rauly, Chief Strategy Officer for The Blinc Group: “Mnuchin’s testimony to the House Financial Services Committee revealed his intentions to ‘collect our necessary taxes and other things’ with regards to allowing cannabis companies to benefit the traditional banking system. This is a game-changing statement which underlines the federal government’s intentions with regards to our industry. Its implications are numerous, spanning from simple credit card transactions to multi-million dollar funding deals, all the way to public listings for canna-businesses. Now is the time to get our ducks in a row; as soon as the Federal Government puts this play into action, regulation, compliance, and standards will follow and become the key to business sustainability. On the other hand, when he refers to ‘other things,’ I can’t help but wonder if he’s referring to making marijuana plant deposits in their vaults.”

Matthew Singer, CEO of tökr: “Positive movement in the push for legitimizing the cannabis industry. More and more states are legalizing cannabis; the sooner the complaint businesses can get access to bank and financial services, the better for everyone.”

Mike Kramer, CEO of 420 Blockchain: “I, and what I imagine to be a majority of the cannabis industry clearly agree with Deputy Mnuchin. The reasons why money derived from cannabis sales should be in banks are obvious when it comes to trackable taxation, transparency, and safety. The government needs to see that cannabis companies are operating under state compliance laws in order to feel comfortable letting these organizations work with traditional financial establishments. After talks at Capitol Hill with various Congress members, I see an obvious desire to integrate my blockchain technology into states with legal cannabis sales to guarantee compliance. At this point, it isn’t a question of if or why we should let cannabis money in banks, but rather how can we get that money in banks as soon as possible? Everyone sees the need so it’s only a matter of time before that need must be met.”


William SumnerWilliam SumnerJanuary 23, 2018
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Bit by bit and block by block, more and more cannabis companies are moving into the cryptocurrency and blockchain market.

Today SinglePoint, Inc. (SING), a full-service mobile technology provider that services the cannabis industry through its subsidiary company SingleSeed, announced a letter of intent (LOI) to acquire Bitcoin Beyond, a software platform that allows retail merchants to accept Bitcoin payments through an existing point-of-sale device.

Bitcoin Beyond was primarily developed to service the legal cannabis industry. With adequate banking services in short supply as well as United State Attorney General Jeff Sessions’ renewed pledge to crack down on the industry, many cannabis business owners are seeking alternative forms of payment, such as Bitcoin and other forms of cryptocurrency, to protect themselves from federal interference and the vagaries of everyday crime.

SinglePoint expects the acquisition, which is valued at $1 million, will help allow the company to provide business owners and consumers a full end-to-end retail experience. Built on a popular technology stack with encrypted merchant data and best security practices in mind, Bitcoin Beyond has been designed to easily integrate with existing POS frameworks and allows merchants to add means of payment like Bitcoin or SinglePoint’s own investment property Weedcoin.

“We are thrilled with this opportunity. Acquiring Bitcoin Beyond put us ahead of what we believe merchants have access to now. This platform has by far the easiest user interface we have seen in the market, and we are confident merchants will be quick to adopt this solution as it stands as the sole alternative to traditional options offered to the cannabis industry,” staid SinglePoint President Wil Ralston in a statement.

SinglePoint hopes to continue to expand into the blockchain market and is currently in negotiations to acquire another, yet unnamed, blockchain centric company.

SinglePoint Partners with “Shark” Kevin Harrington

Earlier this month, SinglePoint began expanding its cryptocurrency footprint when the company announced a partnership with serial entrepreneur and original Shark Tank “Shark” Kevin Harrington.

As part of the deal, Harrington will work with SinglePoint’s cryptocurrency division to promote SinglePoint’s bitcoin exchange and bitcoin payment platform. Harrington will also serve as the public face of the company’s national television campaign, which recently began production last week and is now in editing and post-production. The television ad campaign is set to air on major financial and news networks, such as CNN and Fox News.


William SumnerWilliam SumnerJanuary 19, 2018
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Future Farm Technologies (FFRMF), a Canadian cannabis company with multiple projects throughout the United States, today announced that it entered into a definitive agreement with New England CCS to acquire a 51% stake in FlipCoin, a new cryptocurrency application and Point of Sale (POS) platform.

As cannabis dispensaries across the nation struggle to find adequate banking services under the onerous guidance of the Department of Justice and United States Attorney General Jeff Sessions, who has promised to crack down on the legal cannabis industry, more and more cannabis companies have begun turning towards cryptocurrencies as the solution.

“Under current US Federal law, dispensaries are un-bankable,” said Bill Gildea, CEO of Future Farm, in a statement. “As the industry has grown, an expensive problem for dispensaries has emerged. We believe the unique nature of cryptocurrencies – based on fast, secure, and proven blockchain technology – has the potential to be a game-changer by solving this multi-billion dollar problem.”

Similar to the credit card processing application Square, FlipCoin will allow cannabis dispensaries to accept cryptocurrencies such as accept Bitcoin, Ethereum, Bitcoin Cash, or Litecoin as payment. Expected to launch within the next three weeks, New England CCS plans to install the application within nine of its portfolio dispensaries and to white label the application for dispensaries around the world.

Soon FlipCoin will also become integrated with Coinbase, which is the largest broker exchange of Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and other digital assets with fiat currencies in 32 countries. With over 13 million accounts, Coinbase is also the most downloaded app in the Apple Store and is expected to continue to add more than 100,000 new daily sign-ups.

As part of the deal, Future Farm has agreed to issue 120,000 shares of its common stock to New England CSS and another 10,000 shares of its common stock to Derek Ross as a finder’s fee.

Future Farm is not the only cannabis company to join the blockchain club. Earlier in the week, mCig Inc. (MCIG), announced the website launch of its blockchain focused company OBITX Inc. Focusing on combining blockchain technology with real-world applications, OBITX plans on launching KRYP ATMs, which allows individuals to buy and sell cryptocurrencies as well as make cash withdrawals.


William SumnerWilliam SumnerJanuary 17, 2018
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4min7600

mCig, Inc. (MCIG), a distributor of products, customized packaging solutions, technologies, and services for the global medical cannabis industry, today announced the website launch of its blockchain focused company, OBITX Inc.

Focusing on identifying and investing in projects that combine blockchain technology with real-world applications, OBITX offers ICO advisory services, blockchain consulting services, and blockchain-related software development. As part of the company’s early investments, OBITX has begun to embark on cryptocurrency mining projects by securing a location and purchasing hardware to complete the task.

“Reminded daily how blockchain is the new platform leading to the next wave of innovation. The technology has proven to be reliable, decentralized, and transparent. It’s a disruptive technology having the ability to digitize, secure and incentivize the validation of transactions. Using our best acumen, we are able to identify, invest and incubate technology market leaders from the OBITX ecosystem,” said OBITX CEO, Alex Mardikian, in a statement.

OBITX to Launch KRYP ATMs and Marketing Tools

Over the next several days, the KRYP Network, a technology company that facilitates crytpocurrency exchanges and a partner of OBITX , will be launching their Initial Coin Offering (ICO). Hoping to capitalize on this growing billion dollar industry, OBITX has made plans to deploy KRYP ATMs, which allows individuals to buy and sell cryptocurrencies as well as make cash withdrawals, within the KRYP Network.

The consultancy arm of OBITX, ICOMethod LLC, has also begun working with several companies in preparation for launching their ICO. In addition, OBITX has developed several marketing tools to help assist companies hoping to enter the cryptocurrency and blockchain market. Those tools are as follows:

  • eHESIVE: a self-serve affiliate ad platform with costing per acquisition for cryptocurrencies and other business networks pairing publishers to advertisers with the proprietary traffic control system, sticky pools increasing site monetization.
  • Marketero: An HTML/ campaign based email newsletter service designed to engage and nurture new and current customers within the blockchain and other networks.
  • Latest PR: A press release manager for cryptocurrency sectors and digital investment., and funding rounds.
  • Blog Certified: A multichannel blog repository serving marketers, brands, and content publishers.

Blockchain Is The New Cannabis

mCig is just the latest cannabis company to jump into the blockchain technology. MassRoots (MSRT) has also branched out into blockchain  as the company eases away from being a pure social media company. The company believes that blockchain will be useful in improving seed-to-sale traceability and will explore that with its new point-of-sale system called MassRoots Retail.

Canadian-based LGC Capital announced this week that it was also creating a platform to utilize “the blockchain technologies to create a reliable and verifiable purchase and payment system and use the Internet of Things technologies to track cannabis product shipments so as to provide assurance to consumers regarding the sourcing and quality of products.”


Debra BorchardtDebra BorchardtJanuary 16, 2018
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3min5170

Cannabis packaging company Kush Bottles, Inc. (KSHB) reported rising revenue and net income for its first fiscal quarter of 2018, for the period ending November 30, 2017. Revenue rose 258% to $8.85 million over last year’s $2.4 million and net income was $94,615 versus last year’s net loss of $161,000. Gross margins fell from 34% to 30% as business increased in the lower margin vaporizer category.

“We entered fiscal 2018 with excellent momentum as we saw the impact of the strategic initiatives implemented throughout 2017 start to take hold,” said Nick Kovacevich CEO of Kush Bottles. “This strength in the business led to net profits of $94,615 in fiscal Q1 2018.  We also saw our cash balance increase to $5.5 million, which we plan to invest towards inventory purchasing, development of proprietary products, and other strategic initiatives.”

The company’s gross profits rose to $2.6 million in the quarter over last year’s $834,643. Total operating expenses also increased to $2.5 million over last year’s $971,624.

Kovacevich added, “During the first fiscal quarter of 2018, we saw the release of California’s new temporary regulations for medical and adult-use cannabis sales, which took effect on January 1, 2018. California is not only the U.S.’s largest cannabis market but also our home market where we have already extensively invested in sales, marketing, and infrastructure. We consider the legalization of adult-use cannabis sales to be a major opportunity to scale the business throughout 2018 and beyond, and we have made significant headway to establish the Company as a leader in this market. Many of our clients have been granted temporary licenses and we are working with them closely during this hectic transition period as California finalizes its permanent regulations over the next 6 to 12 months.”

Last week, the company announced management changes. Ben Wu, who has served as Chief Operating Officer since 2014 was stepping down and  Jim McCormick will assume the role of Chief Operating Officer in addition to continuing to serve in his current capacity as Chief Financial Officer.

The company will host a conference call after the market closes on Tuesday. The stock was lately trading at $6.70 for a year high, quite a nice move over the 52-week low of $1.61.

 


Debra BorchardtDebra BorchardtDecember 19, 2017
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Canadian company Aurora Cannabis (ACBFF) is making a strategic investment in Micron Waste Technologies and in return will receive a cut of the gross revenues. Micron Waste (MICWF) is a developer of a proprietary digester solution that treats organic waste which can be used for the waste generated from the cultivation and production of cannabis products. Aurora produces and distributes medical marijuana in Canada.

Terms Of The Agreement

Micron Waste will pay Aurora a royalty equal to 4% of gross revenues generated by Micron, but Micron will keep all intellectual property pertaining to its digestion system. Aurora will have the right to subscribe for up to 6,000,000 shares of Micron at a subscription price of $0.34 per share for aggregate subscription proceeds of $2,040,000 million which represents a 9% interest in Micron on a non-diluted basis immediately post-investment. Upon the first successful sale of a digester within the cannabis industry, Micron will give 2 million shares to Aurora.

New Technology

According to the company statement, Micron has developed a new technology, based on aerobic digestion and subsequent treatment, that converts organic waste into clean water that meets municipal effluent discharge standards. The effluent from currently available digester-based treatment systems of organic waste does not meet municipal discharge standards and requires costly further treatment. Many generators of the organic waste elect, instead, to use municipal landfill sites for their organic waste, which is costly and has a negative impact on the environment. The merits of Micron’s technology have been successfully demonstrated with a grocery supermarket chain located in British Columbia, Canada, and Micron has entered into a Memorandum of Understanding with the group to plan for additional installation of Micron’s organic waste digester units at other locations in BC.

Management Comments

“The treatment and disposal of organic waste in the cannabis industry is a time consuming and costly exercise that is subject to strict regulation by Health Canada,” said Terry Booth, CEO of Aurora. “Micron’s solution promises to be a very elegant, highly efficient and low-cost alternative that will also have a positive impact on the environment. In making this investment, we anticipate benefiting not only from the positive impact on our operations, but also by being exposed to the upside potential of Micron’s commercial development. We look forward to collaborating with Micron in furthering the market reach of this very promising technology.”

“Aurora’s investment provides additional funds to accelerate diversification into other sectors, such as supermarkets, quick-serve restaurants, agricultural operations, and hotels, which are all faced with high organic waste disposal costs,” said Rav Mlait, CEO of Micron. “While our goal has always been to deliver solutions that have a positive impact on the environment, the only way to truly make a difference is by having a value proposition that provides a strong commercial rationale for adoption.”

The Battle With CanniMed Continues

While Aurora is making deals with Micron, the company does not want its potential new acquisition CanniMed (CMMDF) to make any of their own deals. On Monday, Aurora filed a dissident circular against CanniMed’s planned acquisition of Newstrike Resources. Aurora believes that the Newstrike deal is inferior to their own offer to acquire CanniMed.

Booth said, “It doesn’t take a genius to see that a company with no revenues, no sales license, no patients, no intellectual property of significant value, no track record, and not enough funds to continue operating and funding its own expansion, should not be worth giving 35% of CanniMed away to Newstrike shareholders.”

CanniMed has been fighting a hostile takeover by Aurora Cannabis. A hearing is set for December 20 with the Ontario Securities Commission regarding the takeover and whether Aurora proceeded improperly. In the meantime, CanniMed has been putting several poison pills in place to fight the potential acquisition.

 Performance

Aurora Cannabis was lately trading at $5.46, down slightly from its 52-week high of $6.86. Micron Waste shares were lately trading at 43 cents, jumping 12% on the news. CanniMed was lately trading at $15.23, also down from its 52-week high of $17.15, but up dramatically from its year low of $5.66.


Debra BorchardtDebra BorchardtNovember 27, 2017
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A new report from GreenWave Advisors on the cannabis banking industry estimates that California will collect $5.2 billion once the state implements its adult use marijuana market. Including sales tax, that number could rise to $6.2 billion.

Analyst Matt Karnes wrote, “With other new state markets planned for 2018, we estimate total legal marijuana retail revenues of approximately $12.1 billion, or $14.5 billion including sales tax.” Karnes continues to believe that by 2021, all 50 states and Washington D.C. will have some sort of legalized medical marijuana if not a fully legalized market which would result in retail revenues of $30 billion ($36 billion including sales tax).

Most banks do not service cannabis companies with GreenWave estimating that only 5% of financial institutions are on the record as having a relationship with a known marijuana business. Karnes believes this lost opportunity for the banks will drive new federal legislation. In the meantime, the industry has been pursuing its own solutions.

Dispensaries usually have ATM machines available for cash purchases and some engage in a cashless ATM, which essentially functions as a debit withdrawal to the dispensary. Others use a third party to transact the purchases, prepaid cards or mobile wallets. These wallets transfer money from the shopper’s bank account to the dispensary. Some of these mobile wallet companies include PayQwick, CanPay, Tokken and SingleSeed.

GreenWave noted that this banking and payment challenge has created opportunity in the industry. “The land grab is significant (over 7,000 financial institutions in the U.S.) and the successful rollout of these product offerings will likely mitigate one aspect of cannabis investment risk.”

Cannabis Fin Tech Solutions

Kind Financial was a cannabis banking pioneer with its Link to Banking (LTB) platform. The company is headed by former FinCen official Tom Fleming. “LTB assists financial institutions comply with regulatory guidelines by leveraging a proprietary technology platform that tracks and analyzes transactional data enabling banks to identify reportable suspicious activity,” wrote Karnes. The KIND Financial company also provides software that tracks cannabis from seed-to-sale and can track the flow of funds.

Hypur is a software platform that can audit a company in real time to make sure it is in compliance with the law. It can also provide a connection to the point-of-sale system and allow the banks a way to reconcile cash collections with deposits. This company includes John Vardaman, who worked at the Department of Justice and helped to pen the Cole Memorandum.

Safe Harbor Banking Solutions is an original player that launched in Colorado and more recently in Hawaii. Its platform provides an automated front office to help banks bring on marijuana businesses and monitor them. It also handles the back office work of compliance and monitoring. It charges a subscription fee for the service and will soon be available in eight additional states with plans for 20 states in 2018. Safe Harbor is a subsidiary of Partner Colorado Credit Union.

Banking Solutions

Since the big banks have refused to engage with cannabis companies, credit unions have stepped up and Colorado led the way.

The Fourth Corner Credit Union applied for a master account at the Federal Reserve Bank of Kansas City and was denied. The bank filed an appeal. The San Francisco Federal Reserve Bank has shown its willingness to take these types of deposits, so it’s possible that could help Fourth Corner in its quest.

Partner Colorado Credit Union says it handles $80 million a month in marijuana business deposits but is limiting its exposure to the industry to only 10% of its assets.

Legislation

“The Secure and Fair Enforcement Banking Act of 2017 (Senate Bill S1152 and House Bill HR2215) has been proposed to create protections for depository institutions that provide financial services to cannabis-related businesses,” said Karnes. “While there is support on both sides of the aisle, the timing of a vote is unclear.” Karnes maintains that the Trump administration’s stance toward banking deregulation could be a positive for the cannabis industry.

Karnes concluded, “There is no one answer and we think there will be a patchwork of alternative offerings.”


Debra BorchardtDebra BorchardtNovember 14, 2017
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Getting a cannabis cash into a Federal Reserve has been like finding the holy grail. In Colorado, credit unions have sued in order to be able to establish a master account, which is the key to cannabis banking. This past summer, the Fourth Corner Credit Union won a partial victory when a court said that the Federal Bank of Kansas City couldn’t block access.

Apparently, while that was happening in Colorado, HARDCAR Security found the grail in the state of California. The company has been secretly working in a pilot program for the last four to five months covering some the largest cannabis accounts in California. HARDCAR has been depositing the money in both the Federal Bank of San Francisco and the branch in Los Angeles. “No one else has been able to get into the Fed in California,” said HARDCAR Security CEO Todd Kleparis.

A bank sponsored HARDCAR with the Federal Reserve and all of its guards go through federal background checks. “We bring the money to their locations and they go through it,” said Kleperis. “Our company has moved over $25 million in a few short months.” The most important piece of this banking puzzle is that the cannabis company money is now co-mingled with regular money. It legitimizes the cash and allows it to enter into the monetary system.

Cities Also Need Help With Cannabis Cash

In addition to picking up the cannabis business money and depositing it with the bank, HARDCAR said it is also going to be assisting cities with the movement of their cannabis cash. “No other armored car company wants to take the cannabis cash,” said Kelperis, “This risk is too much. Think about all those grow sites in Desert Hot Springs. Who is going to go get it? We’re going to go to the cities and help them put all these tax revenues in the bank.”

Most of the focus on solving the cannabis banking problem has been on the plant touching businesses, but it also turns out that the municipalities were finding that their banks wanted nothing to do with the cannabis tax revenues. Kleperis mentioned that Los Angeles contemplated setting up its own bank, but that it would take years to establish. He also believes that by getting access to the Federal Reserve system, it will keep more of the money in the state and put more money back into the system. There are many stories of “backyard banks” where farmers bury cash because they have no way to bank it and worry about robberies.

HARDCAR is a company filled with military veterans and that may have made the decision for the Federal Reserve to accept cannabis cash as little easier. Or it could be that the California cannabis market will dwarf the Colorado market and that much cash floating around the state would make for a dangerous situation. Either way, it’s a huge step forward for cannabis banking and the mainstreaming of the industry’s money. Kleperis added, “It’s a huge win.”



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