Why PE is Wary of Jumping Into the Cannabis Market

Law360, July 5, 2018, By Darcy Reddan

Investment opportunities abound as the cannabis industry begins to take shape in states across the U.S., but attorneys say a number of obstacles might prevent the private equity sector from making a full-fledged push into the burgeoning industry.

The cannabis industry will certainly call for an influx of cash in order to grow, but inconsistent regulation and intrusive disclosures will likely hurt the willingness of investors to commit capital to entities that are not slam-dunk investments compared to those with a longer life span and proven track record.

Partner Irán Hopkins and associate Claudia Fu of Akerman LLP are regulatory experts in the California cannabis industry, and said they believe that some investment vehicles might not want any part of “plant-touching” investments depending on the type of fund that has been raised.  To read entire article click here.

 

 


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