A sprawling adult-use cannabis industry is taking root from coast to coast. While the rules and regulations vary from state to state, that has not limited some dispensaries from opening locations in several regions. These multi-state operators (MSOs) need to take the specific requirements of each state into account in every aspect of their business, from product types offered to how they bank. What are some of the issues that impact an MSO’s ability to access banking? A multi-state operator (MSO) is a plant-touching cannabis business with a presence in two or more states. While under the same holding company, each location has its own licensing and regulatory requirements as dictated by the state or municipality in which it’s located. Each location needs its own supply chain for cannabis products within that state, for example, among other considerations. While similarly sized companies in other industries can benefit from economies of scale and concrete guidelines set by local, state, and federal government agencies, MSOs in the cannabis industry must navigate a complex web to get access to financial services. With roughly 200 truly cannabis-friendly banks in the country, obtaining those services can already be difficult without additional support.
Sean Hocking, Cannabis Law Report, 06/04/2021 03:52:00