Your TakeNovember 1, 2023
Opening a cannabis banking account involves more stringent compliance controls and longer timeframes.
cannabis banking Archives - Green Market Report
Your TakeNovember 1, 2023
John SchroyerSeptember 20, 2023
The bill, which has bipartisan support, is slated for a hearing in the Senate Banking Committee next week.
John SchroyerSeptember 19, 2023
A record number of banks, credit unions and financial institutions are providing services to state-legal cannabis companies, according to recent statistics from the U.S. Treasury Department.
The agency’s Financial Crimes Enforcement Network – which tracks suspicious activity reports (SARs) filed by banks, and thus calculates the minimum number of banks working with marijuana companies – reported that 812 financial institutions had filed such reports in the second quarter of 2023, the highest number since FinCEN began tracking SARs in 2014.
That’s up from 807 in the first quarter of this year. It’s also something of a rebound from 2022, when the number of banks serving cannabis companies went down to a low of 773 from a peak of 806 banks in Q2 of 2021, according to the FinCEN data.
When FinCEN began tracking marijuana-related SARs in Q1 of 2014, there were only 54 banks reportedly working with cannabis companies.
The states with the top number of SARs filed – and thus likely the most number of cannabis-friendly financial institutions – include California with 3,757, Oklahoma with 2,531, Washington state with 1,970 and Michigan with 1,797.
At the other end of the spectrum with states that have functional marijuana markets were West Virginia with 7, Washington, D.C. with 15, New Hampshire with 17, Alaska with 30, Minnesota with 31, and Louisiana with 35.
The financial sector isn’t technically prohibited from working with state-legal marijuana businesses, but most larger banks have actively avoided the industry out of an abundance of caution, for fear of running afoul of anti-money laundering statutes and federal bank regulators.
The issue is one that some members of Congress have been trying to solve with the SAFE Banking Act for years, and now some U.S. senators are indicating the measure’s got solid chances in 2023, with a Senate Banking Committee vote slated for Sept. 27, MarketWatch reported.
John SchroyerMarch 22, 2023
But SAFE doesn't appear to be enough for some Democratic leaders.
John SchroyerFebruary 23, 2023
Green Check's revenue nearly doubled in 2022.
John SchroyerOctober 10, 2022
Descheduling or some rescheduling options could open the door to more funding opportunities.
StaffOctober 3, 2022
The Daily Hit is a recap of cannabis business news for October 3, 2022.
ON THE SITE
SEC Charges Eight In Cannabis Stock Promotion Scheme
Elegance Brands, Emerald Health Pharmaceutical, and High Times are accused of a stock promotion scheme – The Securities and Exchange Commission announced on September 30 that it had charged eight in a stock promotion scheme that included Emerald Health Pharmaceuticals and High Times Holdings. The SEC says investors purchased $80 million of securities following the promotions. The individuals received payments based on the number of securities sold. Read more here.
Cannabis Banking Bill Passage After Election Season ‘Likely,” Analyst Says
The cannabis industry may not have to remain in regulatory limbo for much longer, but it may take some last-minute horse-trading between aisles, according to Cantor Fitzgerald analyst Pablo Zuanic. After a Sept. 26 trip to D.C. to meet with lawmakers, the Cantor analyst believes that Congressional leaders are poised to pass banking legislation for the cannabis industry in the lame-duck session. Read more here.
Michigan Wants Marijuana Moratorium
Michigan’s largest marijuana operations are plotting an offensive to stop competitors from entering the market in an attempt to buoy falling weed prices in the state. At the request of a lobbyist for some of the state’s largest recreational and medical cannabis growers, the Legislative Service Bureau has drawn up new legislation to prohibit the Michigan Cannabis Regulatory Agency from approving new grower licenses, according to draft legislation obtained by Crain’s. Read more here.
IN OTHER NEWS
Akerna Corp.
Akerna Corp. (Nasdaq: KERN), an enterprise software company and developer of comprehensive technology infrastructures, ecosystems, and compliance engines for the global cannabis industry, today announced that it has entered into a securities purchase agreement with certain institutional investors to purchase 400,000 shares of Series A convertible redeemable preferred stock and 100,000 shares of Series B convertible redeemable preferred stock. Each share of Series A and Series B preferred stock has a purchase price of $9.50, representing an original issue discount of 5% of the $10.00 stated value of each share. Read more here.
Akanda Corp.
International medical cannabis platform company Akanda Corp. (NASDAQ: AKAN) today announced that the company has received a written notification on September 27, 2022, from the Listing Qualifications Department of the Nasdaq Stock Market LLC, notifying the company that it is not in compliance with the minimum bid price requirement set forth under Nasdaq Listing Rule 5550(a)(2). It resulted from the fact that the closing bid price of the company’s common shares, no par value, was below $1.00 per share for a period of 30 consecutive business days. Read more here.
New Leaf Ventures Inc., High Profile Holdings Corp.
New Leaf Ventures Inc. (CSE: NLV) (OTC: NLVVD), announced that it has entered into a non-binding letter of intent to acquire High Profile Holdings Corp., a retail-focused private British Columbia cannabis company. Read more here.
Nabis, StateHouse Holdings
Nabis, a licensed cannabis wholesale platform, today announced an exclusive distribution partnership with California’s StateHouse Holdings. The agreement, which involves StateHouse winding down its distribution arm while pivoting its logistics to Nabis’ technology-centered platform, is an example of the industry’s latest consolidation trend, where self-distributed brands are outsourcing to simplify their business structures, increase efficiencies and prepare for scaling ahead. Read more here.
Heritage Cannabis Holdings Corp., Como Health LLC
Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF), is announced that it is commencing operations in the state of Missouri after Como Health LLC, doing business as 3Fifteen Primo Cannabis, recently received an approval to operate from the Missouri Section for Medical Marijuana Regulation. Initial production on vape products, concentrates, and pre-rolls has already commenced in the state. Read more here.
Silo Pharma, Inc.
Silo Pharma, Inc. (Nasdaq: SILO), a developmental stage biopharmaceutical company focused on merging traditional therapeutics with psychedelic research, today announced that it is working with Premier Consulting as its regulatory partner to assist with the preparation of a pre-investigational new drug (IND) package and meeting request with the United States Food and Drug Administration (FDA) for a novel topical formulation of ketamine, designated as SPC-26, for the treatment of fibromyalgia. Read more here.
Tryp Therapeutics, Inc.
Tryp Therapeutics, Inc. (CSE: TRYP) (OTCQB: TRYPF), a clinical-stage biotechnology company focused on developing psilocybin-based compounds for diseases with unmet medical needs, today announced that the World Intellectual Property Organization (WIPO) published their international patent application (PCT/IB2022/052347) covering the intravenous administration of psilocybin and psilocin. The PCT application, titled “Improved Methods For The Use of Psychedelics” expands and strengthens the IP related to the Company’s development of TRP-8803, an IV formulation of psilocin, which will be administered in conjunction with psychotherapy. Read more here.
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