One of the major themes I’ve tracked in the marijuana market over the years is the up-and-down relationship that pot stocks have had with Wall Street and institutional investors. Lately, we’ve been seeing some major changes in that relationship, including a recent positive development for Tilray Inc (NASDAQ:TLRY). Before I delve into the positive news for Tilray stock, I’ll go through an overview of what’s been happening regarding marijuana stocks and Wall Street. At first, Wall Street was largely locked out of the marijuana industry. Since federal U.S. law prohibits marijuana, banks can’t legally hold any cash that’s directly related to the marijuana trade. It’s for precisely that reason that many marijuana companies across the U.S. have to keep their profits as cash. This has caused significant problems, not only on the accounting side of things but also in terms of safety. There have been stories of armed robberies. The legal situation also means marijuana companies have difficulty getting loans from banks, which stifles the possibility for growth.
Mmp News Author, Medical Marijuana Program Connection, 05/12/2021 20:14:00