Hemp and Cannabis: An M&A Crossroads


Date and Time
Thursday, October 3, 2019
5:30pm— 8:30pm
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Location
Wilson Sonsini Goodrich & Rosati
12235 El Camino Real
San Diego, CA 92130
United States
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Contact
Ellen Chang
Who's coming

A Point in History: Support for legalization of cannabis is marching state-by-state across the US. Hemp has been federally legalized. Both are emerging industries representing billions of dollars in commerce; both are being created from whole cloth because 70 years of cannabis prohibition has demolished any cultivation, manufacturing and supply chain and distribution capabilities. We are literally watching the creation of two behemoth industry emerge before our eyes.

Regulatory Confusion: Much confusion exists regarding differences in regulation between hemp and cannabis. Cannabis is regulated by a patchwork of conflicting state laws and intra-state regulations (particularly in California) vary widely jurisdiction-by-jurisdiction creating “dry” counties and cities adjacent to cannabis dense municipalities. Taxation methods and amount vary widely between jurisdictions and competition between jurisdictions for jobs and tax revenue are emerging.

Un-bankable? Cannabis operators have great difficulty securing MRB (Marijuana-Related Business) accounts. Scaling rapidly in a cash economy creates extreme inefficiencies.

Volatile Operating Margins: To compound this problem, accounting transparency is just starting to emerge; standard operating margins are unknown; accurate analytic metrics are not available and SG&A expenses are escalating far faster than revenue or gross profit.

Scarce Capital: Given the squeamish nature of banks and other lenders, capital in this sector is scarce and expensive. Combined with explosive growth, cannabis operators cannot grow out of cash flow and face a desert of financing options.

In this wild, wilderness of deal flow, how can an M&A professional survive and prosper? Please join us for a panel discussion on this timely topic!

 

Schedule:

5:30 – 6:30 – Networking

 

6:30 – 7:30 – Panel discussion

 

7:30 – 7:50 – Q&A

 

7:50 – 8:30 Networking


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Purchase Tickets

Hemp and Cannabis Panel
$25.00
Early bird pricing through Sept. 19
Map & Directions

Wilson Sonsini Goodrich & Rosati

12235 El Camino Real, San Diego, CA 92130, United States,
by public transit by car by bike Walking