420 FILE-What a difference a year makes! With Subversive Capital announcing the largest cannabis SPAC in history with the acquisition of Caliva and Left Coast Ventures and Weedmap’s eye-popping valuation of 1.5 billion dollars for its cannabis e-commerce platform going public, cannabis opportunities abound!
While private investors view social equity cannabis partnerships as an easier path to raising capital in a limited license environment, deep pocketed capital entrepreneurs see the benefits of building ecosystems composed of an orchestrated network spanning multiple sectors.
Socially conscious cannabis management companies are eager to offer operators programs designed to build generational wealth for those disproportionately impacted by the War on Drugs and invest in those communities that have been disenfranchised due to the consequences of drug policies, to help them gain a toehold in the market.
Cannabis tax revenues are climbing throughout California during the pandemic, with purchasers of marijuana paying about 10% in state taxes on retail buys.
The City of Los Angeles has yet to permit any of the 200 social equity retail cannabis storefronts awaiting licensing since September 2019. Facing a projected $675-million deficit, City Council members and Mayor Garcetti need to agree that issuance of Phase 3/Round One cannabis licenses is imperative, with immediate action needed.
(Gary Mittin is a commercial real estate broker, specializing in cannabis real estate.) Photo: Esty. Prepped for CityWatch by Linda Abrams.