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Tag Archives: POB for Marijuana

Lawmakers Continue Push to Expand Maryland Medical Marijuana Industry

Posted on August 28, 2017 by admin
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Medical Marijuana Payment ProcessingIn the final days of the Maryland legislative session, top democrats agreed to the expansion of medical marijuana growers in the state. Two top lawmakers in particular, Senate President Thomas V. Mike Miller and House Speaker Michael Busch, showed their support by writing a letter in July requesting passage of “emergency legislation” in the legislation session beginning January.

Even with these steps forward, there are still many issues to discuss. For example, lawmakers are still wrestling over which businesses should be given entry into the lucrative marijuana market. Fifteen companies were preapproved last year by regulators. If they pass all final inspections and background checks, they’ll be cleared to open cultivation sites. And what about marijuana credit card processing? With strict federal regulations, merchants are unable to secure processing and funding from traditional financial institutions. Most turn to an alternative provider like Marijuana Merchant Account (MMA).

There have been other obstacles in the process of approving five additional growing licenses. In the final days of the legislative session, House and Senate negotiators battled over a compromise concerning how many new licenses should be issued, along with whether the number of growers should be reduced if a company fails inspection.

If the new bill was passed, it would also favor minority-owned companies. This addition is lawmakers attempt to address concerns raised when two companies sued the state after their application was rejected in favor of lower-ranked bids. According to The Washington Post, these lower-ranked bids were from “geographic regions of Maryland where no growers had been approved”.

Opposition arose to expand the Maryland marijuana market, surprisingly, from the fifteen businesses that have already been given cultivation licenses. These companies have banded together to oppose expanding the market. According to them, this expansion completely derails their business plans and pitches to investors; their plans were based on the expectation that they would have exclusive foothold of the marijuana industry in Maryland.

“Our members relied on commitments from the state when making their business decisions, and it is reasonable for them to expect that the state would honor those commitments,” says Jake Van Wingerden, President of Cecil County’s SunMed Growers. “Many of our members are just months away from delivering medical cannabis to patients, and we are opposed to any changes that would cause additional delays to this important program.”

Unfortunately, the session came to a close with no resolution. The bill was pushed off until 11:55p.m. – with a midnight deadline – before it came up before the full House. Republican lawmakers then delayed the vote by asking questions until the clock hit midnight. The 90-day session came to a close.

The result: none of the companies that received the green light to start growing Maryland’s first legal marijuana belong to African Americans, and the legal battle with two rejected applicants continues (they planned to drop the lawsuit if the bill was passed). The decision may be delayed, but the push for growth continues.

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Posted in Marijuana Banking, Marijuana Industry, Marijuana Merchant Account, Maryland Marijuana | Tagged Marijuana credit card processing, marijuana merchant account, Marijuana POB, Medical Marijuana Merchant Account, merchant account to sell marijuana, POB, POB for Dispensaries, POB for Marijuana | Leave a reply

Marijuana Industry Continues to Evolve, Capitalists Join Industry

Posted on August 18, 2017 by admin
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Indoor Marijuana Grow Room with Plants in Soil Under LightsThe marijuana industry is almost unrecognizable when you compare what it is today with what it was a couple of decades ago. Far from the completely black market, the marijuana industry is now valued at $4 billion a year. In addition, things have transitioned from farmers hiding from helicopters to business suits and legal transactions. Before, funding and payment processing were impossible. Now, alternative lenders offer quick, flexible solutions (consider Marijuana Merchant Account). No more hiding in the shadows.

Among the many changes, the marijuana industry has recently begun to attract a growing line of investors. These individuals are more interested in the money than with the product itself. According to Marijuana Business Daily, investors plan on average to invest half a million dollars in the marijuana industry in 2017.  Several investors have even shared they are willing to risk more than $25 million. Participating parties include individual investors, private equity and venture capital firms. All are hoping to seize profitable opportunities to monetize marijuana.

In a recent article, Forbes revealed the top five financial leaders in the cannabis industry:

  1. MedMen Capital

Founded in 2010 by cofounder and Chief Executive Officer Adam Bierman and Andrew Modlin, the MedMen Opportunity Fund has invested in seven projects, including: dispensaries spanning from California and New York, and cultivation facilities in California, New York and Nevada. $99.2 million has been raised, including $60 million raised through MedMen Opportunity Fund (which closed in April).

  1. Phyto Partners

Known for its generosity, Phyto Partners drops between $500,000-$750,000 into company investments. Phyto takes particular interest in building relationships with leading companies in the marijuana industry, including: cultivators, dispensaries, device/product manufacturers, researchers and more. According to Managing Director Brett Finkelstein, “Since we have the ability to deploy a larger amount of capital, the fund can get more favorable terms. This usually means better valuations, more equity and more control.”

  1. Casa Verde Capital

Casa Verde differs from the previously listed financial companies in that its investments are smaller, $250,000 to $500,000 per new company. However, the company names are bigger (e.g. Snoop Dogg and Ted Chung). Casa Verde says its focus is currently set on becoming the preeminent venture partners for early stage companies.

  1. Poseidon Asset Management

Founded in 2014, Poseidon Asset Management’s exclusive commitment is to cannabis investing. Recently, the company led a $3.5 million purchase of a winery that intends to switch to cannabis crops. Thus far, the company has raised $25 million and invested in 40 different companies.

  1. Arcview Group

Arcview group was founded by Troy Dayton and longtime activist Steve DeAngelo. Arcview has provided capital for 141 companies – Mass Roots, MJ Freeway, Medicine Man, Eaze, among many others – and has invested $115 million. Their specialty is vetting and presenting companies seeking investment with people who wish to invest.

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Posted in Marijuana Industry, Marijuana Merchant Account | Tagged Capitalists Join Marijuana Industry, Marijuana Dispensary payment services, Marijuana Industry, marijuana merchant account, Medical Marijuana Merchant Account, merchant account to sell marijuana, POB for Marijuana | Leave a reply

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