The U.S. cannabis industry is poised to make historic gains in the upcoming presidential election, but that hasn't translated into investor confidence or a fundraising advantage, say several Arizona-based states Jason Vedadi, CEO of Story Cannabis, a company based in , told Greenmarket. Report.
Vedadi began the conversation by pointing out how mainstream cannabis transactions have become, with both Vice President Kamala Harris and former President Donald Trump officially on the record supporting rescheduling cannabis transactions. Ta. Once completed, this could save the industry billions of dollars a year. tax deduction.
Jason Vedadi
“The most positive thing is that, at least on the surface, both sides seem to be in favor of changing the schedule. We are losing the prohibitionist lifestyle of prosecuting people over marijuana. ” Vedadi said.
That said, Vedadi doesn't think the cannabis industry will get everything it expects from Washington, D.C., in the coming months. Instead, a Harris victory would likely deepen the partisan impasse, including on policies such as the SAFER Banking Act, as Republicans are very likely to regain the majority in the U.S. Senate, he said. warned.
Conversely, Bedadi acknowledged that if Trump wins, the new Republican administration could include prohibitionists in its Cabinet, as former Attorney General Jeff Sessions did during the first Trump presidency.
“I think there are good and bad things about both, but I think it's kind of historically good or bad,” Vedadi said.
“See it and believe it.”
In any case, the benefits of rescheduling are now almost certain and have yet to be felt by the investor base, Bedadi said when asked whether Trump's support has increased fundraising momentum. In response, he answered:
Vedadi said the industry had hoped for substantive reform in previous Congresses, only to be disappointed at the last moment. I think it's being pushed too far,” he said. Access to banks.
“There's too much of an 'I won't believe it when I see it' mentality in our industry right now,” Vedadi said. “We're seeing this especially in stock prices. Two years ago, before the lame duck, these stocks were about double what they are now, and now almost all companies are doing better, and there are multiple factors. The outlook is becoming more positive, but I'm still not seeing a reasonable valuation of what I think is the picture from a public market perspective. I believe we're in a situation where we say, “If you give us this, we'll come in. We wouldn't do it before.'' ”
Still, Vedadi said he is “optimistic” and believes the schedule changes and associated 280E tax cuts will be realized in the first half of 2025, or even in the first quarter.
“I'm pretty optimistic. I haven't seen anything that tells me, 'Hey, the DEA is really stuck,'” Vedadi said. “I feel like actually holding this hearing solidified that they don't want to make any mistakes on this. I feel like the government is not actually being dishonest.”
Vedadi said cannabis alone could save tens of millions of dollars in annual tax payments if 280E were no longer applied to state-legal marijuana operations, noting that the savings would be even greater for larger MSOs with larger footprints. . And the benefits of rescheduling and removing the burden of the 280E are multiplied.
“This allows you to lower your prices, lower your profit margins, and not have to worry about how you have to make a profit by actually making a profit. So what you can do is essentially I think it's about giving up the tax savings, increasing the revenue, and then getting the whole black market…because it becomes more competitive,” Vedadi said.
He said the next target in the story is likely the Sunbelt, the final frontier for legal cannabis. Vedadi said Story Cannabis is currently eyeing expansion into Alabama, Georgia, Kentucky, North Carolina and Virginia.
“We want to establish our medical operations early, before the state tightens government regulations,” Vedadi said. “We are more focused on ramping up markets than on mature markets.”
