Add Row
Add Element
cropper
update
National Cannabis Newswire
update
Add Element
  • Home
  • Categories
    • news
    • trends
    • insights
    • industry
    • legalization
    • health
    • culture
    • advocacy
    • Brands
July 28.2025
2 Minutes Read

Transforming Cannabis Business Exits: Strategies to Navigate Tax Hurdles

Cannabis & Tech Today magazine logo in blue and green.

Understanding the Challenges of Cannabis Business Exits

The cannabis industry is facing significant hurdles when it comes to exiting businesses profitably. With high taxes and limited M&A activity, many owners feel trapped. Darren Gleeman, a seasoned financier, identifies a critical issue: Section 280E of the tax code. This regulation prevents cannabis companies from deducting standard business expenses, which means they endure hefty federal taxes on gross profits, crippling cash flow and ultimately suppressing company valuations.

Innovative Solutions: The ESOP Model

In response to these challenges, Gleeman has pioneered an employee stock ownership plan (ESOP) tailored for cannabis businesses at MBO Ventures. His model not only provides a viable exit strategy but also enhances employee ownership. By selling a company to a trust benefiting employees, owners can access liquidity while minimizing tax liabilities. This innovative approach has the potential to transform the cannabis exit landscape, allowing for greater profitability and equitable capitalism.

Why ESOPs Are the Future for Cannabis Companies

The traditional approach to mergers and acquisitions (M&A) in the cannabis space has been stunted. Many potential buyers are undercapitalized, and the ones willing to pay often offer rock-bottom prices. Gleeman’s ESOP model shifts this dynamic entirely. By using seller financing and tapping into future profits, cannabis businesses can afford to transition to employee ownership without the crippling tax burden, fostering a healthier business ecosystem.

Financial Benefits of ESOP Integration

The adoption of Gleeman's ESOP approach offers myriad advantages. Firstly, businesses can drastically increase cash flow by eliminating federal income taxes, making them more appealing to potential buyers. Secondly, this model preserves the founder’s equity while enhancing job satisfaction amongst employees, who are now invested in the company’s future.

Challenges and Considerations Ahead

While the ESOP model presents a promising alternative for cannabis businesses, challenges remain. The regulatory landscape is constantly changing, and firms must navigate complex tax laws and compliance issues. Nevertheless, this innovative strategy could be a beacon of hope for an industry seeking profitability and fairness.

trends

2 Views

0 Comments

Write A Comment

*
*
Related Posts All Posts
07.31.2025

Big Mike Reinvents Cannabis Cultivation: Insights into 2025 Innovations

Update Revolutionizing Cannabis Cultivation: Big Mike's Vision At the forefront of cannabis cultivation innovations, Michael "Big Mike" Straumietis from Advanced Nutrients is driving significant changes that promise to reshape the industry in 2025 and beyond. Known for his charismatic approach, Big Mike blends science with an accessible narrative that resonates across demographic lines. During a recent dialogue at CannMed 2025, he emphasized the foundational role of science. "We believe in science. Science reveals the truth, and this is the brain trust of cannabis," he stated, highlighting Advanced Nutrients' commitment to research and development within the sector. Bridging Ancient and Modern Genetics Big Mike is not only celebrating the virtues of modern cultivation technology; he is also passionate about resurrecting ancient male cannabis traits. In light of historical practices that favored feminized plants, his team is now identifying and integrating neglected male cannabis genetics. As he humorously remarked, "Bring them back … we’ve been discriminated against!" This brings to light the growing necessity to diversify and enhance the genetic pool of cannabis strains, aiming for improved resilience, potency, and adaptability as the industry matures. Elevating Cultivation Through Precision Nutrition According to Big Mike, the journey from seed to successful crop begins with genetics, followed closely by environment and cultivation techniques. Nutritional elements serve as the final, yet critical piece of the cultivation puzzle. As he prepares to unveil a groundbreaking eighth-generation nutrient line—three years in the making—he indicates that this innovation will radically alter how growers approach feeding schedules. This new two-part powdered system (Prime & Push) promises to not only streamline the feeding process but also significantly enhance terpene production—from an impressive range of 1.5% to 6% in field trials. AI: The New Frontier in Plant Cultivation Domestically and globally, the integration of AI technologies like AlphaFold is transforming how plant genomics are approached. Big Mike points out that advancements in AI are compressing timelines for significant discoveries in horticultural practices, stating, "What was taking years? Now they take minutes." This swift advancement in technology signals a potential shift in cultivation methodologies, where smart devices will play an increasingly pivotal role. Raising Industry Standards In a world where claims of expertise can be ubiquitous, Big Mike is spearheading efforts to establish standardized measures for determining true mastery among growers. By introducing certification tools designed to objectively assess a grower's knowledge and application of best practices, he aims to elevate industry standards significantly. This initiative reflects an evolving climate in cannabis cultivation that increasingly prioritizes scientific rigor over anecdotal success. Empowering Global Growers with Language Access With a keen eye on global markets, Advanced Nutrients has made a significant move to assist growers beyond the English-speaking world. By launching translated nutritional guides and websites in languages such as Mandarin and Vietnamese, Big Mike ensures that growers everywhere have access to critical support and resources, underscoring the importance of inclusivity in cultivating cannabis knowledge. Conclusion: The Path Ahead As Big Mike continues to bridge science and storytelling, his approach offers a refreshing perspective on cannabis cultivation. The future of the industry is not just in the nutrients or the technology; it's about fostering knowledge, diversity, and competency among growers. To learn more about the innovations that Advanced Nutrients is bringing to the cannabis sector, consider exploring their upcoming line of products and educational tools.

07.30.2025

Exploring Cannabis Culture After Ozzy Osbourne's Passing: What's Next?

Update Facing Loss and Celebrating Legacy: Ozzy Osbourne's Impact on Cannabis Culture As the cannabis community mourns the passing of Ozzy Osbourne, it reflects on his role in challenging the stigma surrounding marijuana use. While many knew him as the Prince of Darkness who reeled audiences with his musical genius, Osbourne's more communal impacts resonate in the realms of cannabis culture. His candidness about using both THC and CBD for pain management not only revealed a softer side but also set a precedent for artists and communities alike to embrace cannabis openly. The Shifting Landscape of Cannabis Regulation In stark juxtaposition to Osbourne's legacy, the current political landscape tells a different story. Recent developments have emerged as alarming signs for cannabis advocates, especially with DEA head Anne Milgram leaving cannabis rescheduling off her strategic priorities. This oversight suggests that the so-called progress in legalization is perhaps more smoke than fire. Without federal support for rescheduling, the momentum for reform continues to wane, highlighting a disconnect between state and federal regulations. Showcasing Science: THC and CBD in Migraine Relief The science backing cannabinoid efficacy is gaining traction. A recent study indicated that a combination of 6% THC and 11% CBD significantly relieved migraine pain compared to a placebo. This research bridges the gap between anecdotal experiences and clinical validation, proving that the budding industry holds substantial medical promise. Migraines may no longer just be relegated to traditional medicine; the cannabis industry is claiming space in the medical community, reshaping perceptions one trial at a time. Gun Rights and Cannabis Users: A Legal Dilemma The proposed DOJ rule raising concerns for cannabis consumers marks yet another hurdle. The announcement implies that anyone using cannabis would be in violation of federal law, hindering their ability to regain gun rights. This further complicates the discussions around cannabis legality, exposing the stark contrast between state-endorsed use and federal prohibition. As the gun rights debate rages on, cannabis users find themselves cornered in a political battlefield where personal freedoms clash with outdated legislation. Investing in the Future of Cannabis: Key Players to Watch In the dynamic landscape of cannabis, certain companies like Curaleaf and Green Thumb Industries are set to shine amid evolving policies. As Curaleaf reigns as the largest cannabis entity globally, with revenue figures soaring, and Green Thumb extends its retail footprint across various states, these companies may be emblematic of the industry’s potential. Investors keeping a keen eye on these players could see promising opportunities as shifts in regulations pave the way for expansion. As we navigate through the current political and cultural landscapes, from mourning musical legends to analyzing legal barriers, understanding the multifaceted cannabis industry is crucial. As stakeholders—from advocates to investors—continue vying for change, it remains imperative to recognize and amplify the powerful narratives shaping this thriving sector. Are you ready to dive deeper into the culture and business of cannabis? Stay informed and connected as we unpack the latest innovations and trends in the industry.

07.29.2025

Legislative Battles and Research: Cannabis Insights for Advocates

Update Weekly Cannabis Update: Legislative Hurdles and Scientific InsightsWelcome to your essential update on the latest happenings in the cannabis industry for the week of July 15 - July 22, 2025. This week saw significant legislative actions and research findings that continue to shape the landscape of cannabis in the U.S.Congress Blocks D.C. Cannabis Sales: A Continued Fight for Local ControlIn a move that keeps a tight grip on D.C. cannabis sales, a House subcommittee has voted to maintain the Harris rider, which prohibits the District from utilizing local funds to regulate recreational cannabis. This decision persistently disregards a mandate set forth by D.C. voters back in 2014, who legalized the substance. Delegate Eleanor Holmes Norton vocally opposed this rider, framing it as a direct assault on the principle of home rule.In contrast, recent Senate actions indicate a potential shift toward expanding medical access for veterans and analyzing how cannabis could mitigate the opioid crisis.Debunking Myths: Cannabis Legalization and Youth ConsumptionDuring a recent webinar hosted by SAMHSA, Dr. Ryan Vandrey from Johns Hopkins University challenged the longstanding belief that cannabis legalization boosts usage among teens. His insights highlighted that both data and trends show stable or declining patterns of use among youth in states where cannabis is legal. Vandrey advocated for regulatory approaches that prioritize comprehensive evaluations of various cannabinoids beyond just THC, promoting a better understanding of their effects.Safety in Marketing: Florida’s Stricter Rules on Hemp ProductsIn Florida, regulators are stepping up to clarify what constitutes attractive packaging for hemp products targeting children. Proposed measures might impose stricter guidelines, particularly concerning cartoon imagery and candy-like forms. This local initiative signals a burgeoning concern over youth-targeted marketing in the hemp industry.Texas Legislature at Odds Over Hemp RegulationsThe ongoing debate in Texas regarding hemp regulations has reignited during the legislative special session. Following the recent veto of an extensive hemp ban, proposals to outlaw any detectable THC or cannabinoids beyond CBD are back on the table, raising alarm among advocates about potentially devastating impacts on the $1.9 billion industry.Governor Greg Abbott has expressed a preference for robust regulations rather than prohibition, suggesting age limits and THC caps, while aiming for a structured approach akin to that of alcohol laws.What’s Next in CannabisThe dynamics of cannabis legislation continue to evolve, with new measures and research emerging that could redefine how cannabis is regulated and consumed. Stay informed as advocates, legislators, and researchers navigate this rapidly changing landscape.

Terms of Service

Privacy Policy

Core Modal Title

Sorry, no results found

You Might Find These Articles Interesting

T
Please Check Your Email
We Will Be Following Up Shortly
*
*
*