Is The Cannabis Industry Too Optimistic?
Portfolio Pulse from Joana Scopel
Anthony Coniglio, founder, president and CIO of NewLake Capital Partners Inc. (OTCQX:NLCP), expressed skepticism about the imminent passing of the Secure and Fair Enforcement (SAFE) Banking Act, which is crucial for the cannabis industry. The Act would allow financial institutions to provide services to licensed cannabis businesses in states with legal medical or recreational programs. The Department of Health and Human Services recently recommended reclassifying cannabis from Schedule I to Schedule III status, which could exempt cannabis companies from IRS Code 280E, facilitating federal tax reliefs.
September 07, 2023 | 9:29 pm
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NewLake Capital Partners Inc. could be impacted by the potential delay or failure of the SAFE Banking Act. The Act's passing would facilitate banking services for cannabis businesses, potentially benefiting NewLake Capital.
NewLake Capital, being a part of the cannabis industry, is directly affected by the regulatory environment. The SAFE Banking Act's passing would allow financial institutions to provide services to cannabis businesses, potentially benefiting NewLake Capital. However, the skepticism expressed by the company's CIO about the Act's imminent passing could negatively impact investor sentiment.
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