Cannabis Investing in the U.S.: The Good, the Bad, and the Ugly

03/18/24 • 28 min

Cannabis investing is risky business. The current federal conflict, a punitive federal income tax situation, and an inability to access financial institutions put off many institutional investors. Not so though for Emily Paxhia, seasoned institutional investor and one of the very first institutional investors in cannabis via Poseidon Asset Management. In this episode, Emily and Hilary discuss the past, present, and future of cannabis investing in the United States. Emily shares her insights on the biggest booms and busts for Poseidon and what she sees on the horizon for cannabis reform as it impacts investors of all kinds. Despite the current volatility for the U.S. cannabis industry, having launched multiple cannabis-focused funds in the past 10 years, Emily has high hopes for the future expansion of and innovation in the U.S. cannabis industry.

Previous Episode

Catalyst Cannabis Takes on the California Department of Tax and Fee Administration Over Cannabis Excise Taxes

Since legalizing in 2016, California has experienced rampant rate failure across its licensed cannabis companies. The State of California also has some of the highest and most aggressive cannabis taxes in the nation. In an effort to stave off the California Department of Tax and Fee Administration’s (CDTFA) latest round of rulemaking that would, among other things, extend cannabis excise taxes to cannabis accessories, Catalyst Cannabis Co. (one of the state’s largest cannabis operators) is in a complex challenge with CDTFA over its rulemaking authority, alleged procedural violations, and the overwhelmingly negative impact of such tax rules. In this episode, Husch Blackwell's Hilary Bricken and Anthony Almaz, General Counsel for Catalyst Cannabis, break down and analyze this potential crucial fight between the industry and California’s top tax regulator.

Next Episode

THC Infused Beverages: Cantrip’s Journey Through the Hemp-Derived Looking Glass

In 2023, Total Wine & More jumped into the cannabis drinks arena in Minnesota. Since then, there’s been an influx of “THC Beverages” hitting the marketplace, including in interstate commerce. How is this legally possible, and why are these libations picking up great speed with consumers? Because a lot of these “THC beverages” fall into the hemp-derived cannabinoid category. Due to the passage of the 2018 Agricultural Improvement Act (known as the “Farm Bill“), hemp and all of its derivatives (containing no more than .3% THC and that are not synthetically derived) are no longer illegal schedule I controlled substances pursuant to the Controlled Substances Act. As a result, enterprising hemp product makers and businesses quickly took advantage of this seeming oversight, while states are just now playing catch up on the regulatory side. Some states are regulating these products, while others aren’t doing anything. In this episode, Husch Blackwell's Hilary Bricken and Adam Terry, CEO of Cantrip, which is taking the hemp-derived drinks space by storm, discuss the trials and tribulations (and successes) of navigating this emerging segment of the cannabis industry.