Last week, we learned that Colorado cannabis regulators are reassessing taxes on wholesale cannabis transactions as the likelihood of federal legalization becomes more realistic.
There are several pieces of legislation that are focused on cannabis legalization at the federal level.
Currently, 36 states have legalized medical cannabis and 18 states have legalized recreational cannabis.
Federal legalization measures could include excise taxes on recreational cannabis production or wholesale transactions that are as high as 25%.
Based on what we have read, most of the members on the committee that the MED created as a result of House Bill 1301 want to lower or remove the 15% excise tax.
We believe this would be a more favorable scenario for cultivators and will monitor how state legislators decide to address this aspect of the industry.
We believe the US cannabis industry is reaching an inflection point and are bullish on the long-term growth prospects that are associated with the market.
All information that we provide is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities.