When your cannabis business needs cash, where do you turn? Should you give up some control for investors or borrow money and risk debt? At the Benzinga Cannabis Capital Conference in Chicago, experts tackled these tough decisions. The panel, “Cannabis Financing 101,” offered practical advice for businesses at every stage.
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Sources Of Funding For Cannabis Startups
Moderated by Marc Claybon, principal-tax at Crowe, the session featured Tayyaba Khan, partner at Cassels; Adam Stettner, CEO of FundCanna; Anthony Coniglio. CEO of NewLake Capital Partners (OTC:NLCP) and Charles Alovisetti, partner at Vicente LLP. They shared essential tips on navigating debt, equity and liquidity in today's cannabis market.
“For newer companies, friends and family funding is often the only option,” Alovisetti said, pointing out that more established businesses can tap into broader sources such as state grants, social equity programs, or hard money lenders. However, he added, "Not every business is a good candidate for debt. You have to consider cash flow and collateral.”
While startups may struggle to secure traditional financing, larger, more established cannabis operators may have access to sale-leaseback agreements or other forms of asset-backed lending.
Equity Vs. Debt: What Works For Your Business?
Khan detailed the pros and ...
