EXCLUSIVE: Weed Companies Will Be Treated Like Normal Businesses Once This Tax Provision Goes Away, Experts Say
Portfolio Pulse from Jelena Martinovic
The removal of Section 280E from the Internal Revenue Code could allow cannabis companies to operate like normal businesses, enabling them to deduct typical business expenses. This change would provide companies like Verano Holdings and others with more funds for R&D and make them more attractive to investors. The potential rescheduling of cannabis could further enhance these benefits.
October 08, 2024 | 6:48 pm
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POSITIVE IMPACT
Gold Flora Corp could benefit from the removal of Section 280E, allowing it to compete more effectively with illicit operators by offering competitive pricing.
The removal of Section 280E would allow Gold Flora to reduce costs and offer competitive pricing, helping it to better compete with illicit cannabis operators.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
AdvisorShares Pure US Cannabis ETF could see increased investor interest as cannabis companies become more attractive with the removal of Section 280E.
The ETF is likely to benefit from increased investor interest in cannabis companies as they become more financially viable with the removal of Section 280E.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 60
POSITIVE IMPACT
Chicago Atlantic Real Estate Finance could become more willing to provide capital to the cannabis industry with the removal of Section 280E and potential rescheduling.
The removal of Section 280E and potential rescheduling could make cannabis companies more attractive to lenders like Chicago Atlantic, increasing their willingness to provide capital.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
Verano Holdings could benefit significantly from the removal of Section 280E, allowing it to allocate more funds to R&D and improve its business operations across 14 U.S. states.
Verano Holdings is directly mentioned as a company that would benefit from the removal of Section 280E, allowing it to reinvest in R&D and expand operations, which is likely to positively impact its stock price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80