Synopsis: Colorado Appears Ready to Open Cannabis Markets to Outside Investors
“Colorado appears ready to open cannabis markets to outside investors”, gives us this week’s Hot #Zinfo. Written by Jeff Smith and published by MJ Biz Daily, this article gives insight into new proposed cannabis legislation in Colorado.
Did you know?
Colorado’s $1.5 billion-dollar marijuana industry might be on the verge of opening its doors to outside investors and capital. It’s been almost a year since former Gov. John Hickenlooper vetoed a similar bill.
Currently, Colorado law limits out of state owners to a maximum of 15 people.
What’s the big deal?
This limitation removes any possibility of public stock offerings as well as mergers with publicly held companies AND closes the door to capital raises from venture capital funds with more than 15 investors.
With legalization spreading across the nation, many investors are taking their funds to “friendlier” markets. Many canna entrepreneurs are afraid Colorado is going to get left behind.
Dean Heizer, executive director and chief legal strategist for Colorado-based LivWell Enlightened Health, has a few words to say, “What we’re seeing now is states like California, Florida, Massachusetts bring in capital to get ahead of us in infrastructure, R&D, new-product development.”
“That’s not something the Silicon Valley of cannabis – Colorado – should allow to happen,” Heizer said.
Infrastructure, R&D, new-product development, are all elements important to sustaining and growing a new industry, right?
Hickenlooper vetoed the previous legislation because he felt it was premature to make such a big push without proper banking or federal legalization.
Hickenlooper isn’t the only one against this type of legislation. Chris Woods, the owner of Boulder-based dispensary chain, Terrapin Care Station, feels this new legislation could open a door to more black-market activity.
When last year’s legislation got the boot, big names in Colorado cannabis, such as The Medicine Man and LivWell threatened to uproot their operations.
Can you imagine Colorado cannabis without the Medicine Man of LivWell?
Many are excited about opportunities the proposed new legislation will bring to cannabis in Colorado.