Weed Talk Now – Tips to Keep Your Business Afloat Right Now
Weed Talk Now with Jimmy Young of Pro Cannabis Media and Curtis Dalton of Cannabis.Net sit down with noted cannabis business consultant David Rabinovitz to talk about how cannabis companies can stay solvent in these pandemic days. One problem facing the industry is that cannabis companies do not qualify for the CARES ACT and emergency business loans. Cannabis companies do not qualify for bankruptcy court, which makes restructuring debt and loans very difficult. Should a cannabis company be looking for loans right now or equity partners? Are there people able to raise funds for cannabis companies in these very difficult lending times? You bet, but the costs are very steep and predators are lurking around every corner in order to extract maximum value for their timely cash infusion.
We also discuss the recent unemployment numbers and if David sees a peak coming or a longer, more drawn out, slow down. Did the companies of America rip the band-aid off or is a slow, painful, peeling going on now? One interesting debate was whether David sees cannabis as a voting issue or a recovery issue along the lines of job creation. David feels that there is more probability of cannabis legalization around Trump doing it as an election tactic as opposed to a “recovery from recession” solution. Curtis Dalton, of Cannabis.net, thinks there is a much better chance we see cannabis legalization if we have a severe, almost depression-like downturn after the coronavirus. Basically, the longer and more painful the recession/depression is, the better chance we have at seeing cannabis legalization due to job growth and taxation. In times of massive economic dire straits, politicians will “throw anything against the wall” in order to get people back to work and create jobs, including federal cannabis legalization. If we have a short recession or a quick recovery, the odds of cannabis legalization actually go down.
Do you agree? Listen to David, Curt, and Jimmy discuss funding tips, cutting costs, and how to survive the pandemic as a business. Want to chime in and get on a show, send us a note and we can make it happen.