The restriction of Production licenses to one-per-entity will prevent growers from leveraging economies of scale in production and business management, putting further downward pressure on Producers’ profitability. At some point, the balance of Costs and Benefits associated with “going legit” will, unfortunately, tip back toward continued illegal operation.
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Nothing much really new in this Fox News article, Colorado’s pot tax revenues could go up in smoke, says lawmaker, but it does a really nice job in laying out the banking issues legal cannabis businesses are facing. The article explains why the lack of banking for marijuana businesses is causing problems for both the businesses themselves and the states that would like to collect taxes on marijuana revenues. It also provides a concise update on where the federal government (as relayed by Eric Holder) stands on all this.
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Our own cannabis business lawyer extraordinaire, Hilary Bricken, will be appearing live today on MSNBC at 1:30 p.m. PT, 4:30 p.m. ET. Hilary has been asked to appear on Disrupt with Karen Finney to discuss “the politics of pot legalization” right before the start of the Super Bowl. We also expect Hilary to be asked to opine on marijuana in the workplace, including in the NFL.
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