Cannabis Industry's Capital Crunch: Why It Needs More Funds Than Other Industries, Will Fed Legalization Change This?
Portfolio Pulse from Joana Scopel
A study by Viridian Capital Advisors reveals that the cannabis industry requires more capital than other similar sectors. The research compared the capital needs of the cannabis industry against potential acquirer sectors in the event of federal legalization. These sectors include tobacco, alcoholic beverages, pharmaceuticals, and consumer products. The study found that the cannabis industry's capital intensity is high due to federal restrictions on interstate commerce. However, federal legalization could reduce operational costs and eliminate redundancy, potentially easing the capital crunch.
August 29, 2023 | 7:46 pm
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British American Tobacco is mentioned as a potential acquirer in the event of cannabis federal legalization.
The potential for federal legalization of cannabis could open up new acquisition opportunities for British American Tobacco. However, it's uncertain when or if this will happen.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Japan Tobacco is mentioned as a potential acquirer in the event of cannabis federal legalization.
The potential for federal legalization of cannabis could open up new acquisition opportunities for Japan Tobacco. However, it's uncertain when or if this will happen.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Altria Group is mentioned as a potential acquirer in the event of cannabis federal legalization.
The potential for federal legalization of cannabis could open up new acquisition opportunities for Altria Group. However, it's uncertain when or if this will happen.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Philip Morris International is mentioned as a potential acquirer in the event of cannabis federal legalization.
The potential for federal legalization of cannabis could open up new acquisition opportunities for Philip Morris International. However, it's uncertain when or if this will happen.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50