As per news outlet, JDSupra, the most recent MJBizCon had some promising moments, which could imply that 2020 might be the year for the cannabis industry.
MJBizCon, also known as the Marijuana Business Conference, brings together cannabis professionals, lawyers, and other experts to address not only the current stance of the industry but also what to expect moving forward.
The 10 Viewpoints
The following is a summary of viewpoints, primarily that of McGuireWoods’ lawyers, Tim Loveland and Royce DuBiner, compiled by the news outlet. The major improvements appear to involve growth opportunities and the possibility of creating relationships with banks and the government. However, not everything is projected to be all sunshine and rainbows:
#1. The U.S. Food and Drug Administration (FDA) to Take Time on Its Viewpoints on CBD
CBD has had a lasting impression around the world, especially in the U.S. Initially, having impressed the public with its ability to ease seizures, consumers have come to realize its positive effect on different areas of health. That said, a market quite explosive as that of CBD requires clarification. This is an urgent issue, as many players have taken the booming business to their advantage. As per McGuireWoods lawyers’, Time Loveland and Royce DuBiner, the wait for clarification from the U.S. FDA in terms of CBD products and standards will have to continue.
#2. Possible Establishment of Cannabis Banking, Businesses Need to be Watchful
Borrowing money to start a CBD or cannabis business has become tough. This is due to a number of factors including legalization, the risks associated with the industry and the possible issues that may arise on a governmental level. The duo anticipates the establishment of relationships between businesses and banks for cannabis-related endeavors in 2020. That said, businesses have been advised to jump at the opportunity as it comes up.
#3. Room for Growth in Cannabis Industry but Regulations Need to be Studied
As states like Illinois and Michigan begin to accept the likes of the cannabis industry, businesses can expect to expand. However, all states have unique viewpoints on the matter, therefore should one decide to expand towards the west, it is crucial to understand the regulations present as well as the possible issues and/or changes that may arise in the future.
#4. Hemp Supply Needs Evaluation, as Licenses Aren’t Immediately Given
Obviously, with growing hemp comes bearing in mind the appropriate seasons, as it is not a year-round process. To ensure hemp producers are able to deliver, a lot of thought needs to go into supply, especially as demand is on the rise, otherwise, the opportunity cost of delays is evidently, revenue.
#5. Hemp Businesses Need to Study the Process of Transferring Licenses Among Others
As per the referenced duo, hemp businesses looking to establish partnerships and growth should not only focus on the supply side of things but also the possible concerns that might arise in being able to transfer licenses from one owner to the next.
#6-7. Hemp Businesses Must Establish Healthy Relationships with the Government
With such unclarity on cannabis legalization as well as the do’s and don’ts, it has been advised that hemp businesses be on good terms with the government. In addition, they must abide by current compliance laws, whether it be following the FDA guidelines, ensuring the safety of consumers or appropriate manufacturing practices, that way anything from miscommunication to the removal of a license can be prevented from the get-go.
#8. Possible Delays in the SAFE Banking Act
Although the SAFE Banking Act, which was established to introduce the involvement of financial institutions and banks within the cannabis industry, is gradually garnering support from Congress. Experts in the cannabis field foresee the final verdict from the Senate to come at a later time than one might expect.
#9. This is the Year for Active Presence of Investors
As much as experts anticipate a delay in bank involvement, others trust that lenders and investors will grab at opportunities this year. Hence, the latter have been encouraged to study the areas with the most profit-making capabilities and also the big picture and small details prior to jumping at them.
#10. More Approved State Programs Have Been Projected
New Jersey and Louisiana were supposedly the first state programs approved by the USDA. As per JDSupra’s reporting, this is only the beginning, as more states are sure to join the list.