Total delinquent payments by U.S. cannabis operators have exceeded $3.8 billion and could balloon to $4.2 billion in 2024 without some intervention.
The problem stems, in part, from poor cash-flow management and the heavy tax burden of Section 280E, according to a report by Oregon-based Whitney Economics.
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“The pressures created by current macroeconomic factors and regulatory policies have incentivized operators to stop paying their suppliers,” Whitney founder Beau Whitney said in a statement.
“This data further affirms the fact that the cannabis industry is struggling.
“Unless there is some form of federal and state regulatory intervention, the issues associated with the lack of payments will only get worse.”
A survey of an unspecified number of respondents found that:
Cannabis cultivators are
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