Before You Subscribe: Cannabis Investor Education
Brian DeFoe authored an article in Oregon Business magazine’s September issue titled “Before You Subscribe: Cannabis Investor Education.” The article discusses business opportunities, risks and considerations for investors in the cannabis industry.
Your investment may be forced to operate entirely in cash. Because cannabis remains illegal under federal law, banks generally will not open accounts for cannabis businesses. Therefore, your potential investment is unlikely to get a line of credit from a bank and may even be unable to open a checking account. Without a checking account, routine business tasks become difficult. Even if the company gets comfortable with paying its bills in cash, operating entirely in cash — and having a lot of cash on hand at any given time — means the business may become a target for crime.