Benzinga - by Nicolás Jose Rodriguez, Benzinga Staff Writer.
"The right investors are not scared by the complexity of cannabis regulations," TILT Holdings (CSE: TILT) (OTC: TLLTF) CEO Tim Conder said at the Benzinga Cannabis Capital Conference.
"If they are, it's a giant red flag," he added.
Conder and other industry experts convened at the Marriott Downtown Magnificent Mile in Chicago to explore the intricacies of establishing prosperous cannabis enterprises amidst evolving regulations.
Despite the challenges posed by varying state rules, businesses in the cannabis industry can thrive with adaptability and strategic legal guidance, reflecting a promising future of growth and maturation for the sector.
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Navigating Diverse Cannabis Regulations In the U.S. each state has its own set of rules and requirements for cannabis businesses, making it a daunting task to navigate the legal landscape.
Panelists emphasized the importance of adaptability and contingency planning. With regulations changing over time and often unexpectedly, businesses need to be prepared with multiple contingency plans to address potential challenges.
"You need a business plan that makes sense, and you have to understand where every nickel goes and the challenges you're up against," said Darren Lampert, CEO and co-founder of GrowGeneration (NASDAQ: GRWG), a non-plant touching cannabis company.
Success in the cannabis industry requires tailoring strategies to each state's unique regulations. What works in one state may not work in another, and businesses must be agile in adjusting their approach to comply with local laws.
Erica Rice, a lawyer at Foley Hoag, highlighted the value of legal counsel and regulatory experts in the cannabis space. Businesses should seek guidance from professionals who understand the intricacies of the industry and can help navigate the legal complexities.
"In cannabis, you start with compliance from seed to end. It's overwhelming, but it forces you to plan and think ahead," Rice said.
Attracting Cannabis Investors The discussion also touched on the challenges of attracting investors to the cannabis industry. Panelists noted that investors who understand the regulatory challenges and have a long-term perspective are more likely to be the right fit for the industry.
Despite the current challenges and uncertainties, panelists stressed the importance of having a long-term vision for the cannabis industry. They believe that as the industry matures, pricing disparities will diminish, and high-quality products will become more prevalent.
The panelists recognized that the cannabis industry is still in its early stages, similar to the "green alcohol" phase. However, they expressed optimism about the industry's potential for growth and evolution over time.
"Cannabis is like seven dog years for every year in any other industry. You need a strong constitution to get involved," said BeLeaf Medical CEO Jason Nelson.
Want to watch more about the cannabis bill and what it means for the industry? Tune in to the Benzinga Cannabis Capital Conference in Chicago live. For existing subscribers, you can get direct access through our research platform. For new users, you can get instant access here!
Photo: TILT chief executive Tim Conder
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