Banks Pursuing Cannabis Banking
September 3 2020 21:28 - 21:29 UTC
September 3 2020 21:29 - 21:30 UTC
September 3 2020 21:30 - 21:31 UTC
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September 3 2020 21:35 - 21:36 UTC
September 3 2020 21:36 - 21:37 UTC
In this section of the On Demand bootcamp series takes a deeper dive into the cannabis industry. It assumes knowledge from the previous bootcamp series “Banks Curious about Cannabis Banking’ which contains many useful resources that you will find helpful, especially if you are new to CRBs.
Banks Pursuing Cannabis Banking
Financial institutions looking to pursue banking with licensed cannabis operators need to understand the nuances of the cannabis industry. Many areas within the cannabis industry have components that are irregular to any other industry. Financial institutions need to understand these components to mitigate risk. By understanding banking in cannabis, marijuana law basics, and the various business entities in the industry, financial institutions will have a clearer position to who and why they will bank with in the cannabis industry. The resources in this section have been contributed by Green Flower, the global leaders in business solutions for the cannabis industry, as well as the official authorized training provider to FOCUS standards.
The resources below consist of:
Video, Part 1: Marijuana Law Basics - In this segment, you will explore cannabis law basics, and the statewide use of cannabis for medicinal purposes and recreational use. Also covered is how the CSA treats marijuana as a Schedule 1 controlled substance, and with but absent congressional action marijuana will remain a Schedule I controlled substance for the foreseeable future.
Video, Part 2: Risks - This video discusses the legality of marijuana under federal law, and as a result there is no corporate shield that protects cannabis business from criminal prosecution.
Video, Part 3: Banking - This video discusses legalized marijuana, and the company operates, and the terms associated with the business and the cash management of that business.
Video, Part 4: Safety Requirements - In this video, the safety requirements in the cannabis industry should not be looked at any different than other industries in terms of processing and manufacturing. Fire codes, electrical codes, and good manufacturing practices should still exist.
Video, Part 5: Consumer Protection - This video discusses several organizations and regulations that were created to ensure the safety of cannabis consumers. Our experts highlight several organizations including the Consumer Safety Protection Commission (CSPC) and the Food and Drug Administration (FDA) and their roles regarding cannabis products.
Video, Part 6: How much Capital is needed without Federal or Bank Lending? - This video segment talks about the amount of capital needed without federal or bank lending. You will learn that the average cultivation costs for an outdoor operation is approximately $17 a square foot to create, a Mixed/light greenhouse $50 a square foot to create, and for an Intensive indoor operation it is approximately $75 a square foot to create.
The Business of Cannabis Processing and Manufacturing - Processing and manufacturing is an increasingly broad sector, that is often overlooked in the cannabis industry. While cultivation experts grow the actual cannabis plant, manufacturers process the raw flower to create value-added goods and products. This field also includes product growth and development, which can be broken down into four categories: cultivation, extraction, analytics, and biochemistry. While the functions of these pillars may overlap, the goal of each is to produce safe able cannabis products.
The Business of Cannabis Retail - Cannabis retailers are licensed professionals who sell cannabis products directly to consumers through a storefront premises or delivery. Some projections estimate that medical 1 and adult use cannabis retail sales may reach $30.4 billion by 2023. The state of Colorado 2 alone recorded nearly $1.75 billion in retail sales for the year 2019. As consumer demand 3 expands and new geographic regions legalize, demand for cannabis retail will only increase.
Video, Part 7: The Future of Industrial Hemp in Corporate America - Industrial hemp has begun to slowly infiltrate corporate America through start-up companies and brands. These smaller products have piqued the interest of larger companies and corporations who are looking to engage with the industrial hemp industry.
The Business of Industrial Hemp - This article offers a comprehensive overview of Industrial Hemp including its history within the US, related legislation, and contemporary uses. It also provides details on the several aspects and uses of hemp, including seeds, fibers, building materials, fuel, and more.
Video, Part 8: The Cannabis Industry from a CPA’s Standpoint - The Cannabis Industry from a CPA's Standpoints discusses the risks associated with operating a business in the cannabis industry. It addresses both the struggles as well as the opportunities associated.
Accounting Principles in the Cannabis Industry - While the outlook is hopeful for the cannabis industry as a whole, statistics have shown that only one in five of all cannabis startups will make it past the first five years of business. This hurdle can make it difficult to obtain funding, since many investors are wary of the industry. In addition, the cannabis industry does not receive financial luxuries that are commonly offered in other sectors. One way that emerging cannabis companies can overcome this obstacle, is to emphasize the importance of the accounting department and maintaining a balanced budget.
Video, Part 9: Tips and Tools for Underwriting Cannabis Companies – Federal - This video discusses the various bills and acts that have been passed at the federal level, as a mean to analyze to opportunities to invest into the cannabis industry.
An Investor’s Guide to the Cannabis Industry - The cannabis industry largely depends on investments, which have surged in the wake of recent legalization movements. A data analysis company, New Frontier Data, reported 100 publicly traded cannabis companies and roughly $14 billion in industry investments during 2018. A 2018-2019 annual survey by the Journal of Investing found that cannabis investments had reached mainstream popularity with 55% of all respondents reporting client inquiries.
For more information about standards development and 3rd party certification please move to the next On Demand bootcamp series ‘ Banks Actively banking CRBs’
- Cannabis Related Business (CRB)
- Direct MRB
An Investor's Guide to the Cannabis Industry.pdfAttendees Only
Accounting Principles in the Cannabis Industry.pdfAttendees Only
The Business of Industrial Hemp.pdfAttendees Only
The Business of Cannabis Retail.pdfAttendees Only
The Business of Cannabis Processing and Manufacturing.pdfAttendees Only
Purchase this webinar to access it on demand.