By Steve Schain
Most businesses fail, marijuana businesses fail more greatly, but neither marijuana businesses, nor their owners, are entitled to bankruptcy law protection.
Instead, because of marijuana’s 100% federal illegality, and because bankruptcy can’t be used to facilitate federally illegal activity or administer assets that can’t be possessed or sold under federal law, bankruptcy protection is denied to both marijuana growers, processors, sellers and transporters—and the parties that own them.
Stated another way, despite spanning 34 states and generating $10.8 billion domestically in 2018, the legalized marijuana industry is deprived of a rudimentary business tool available to every other sector of commerce and essential to a business’ sustainability and investor protection.
Read the full article on cannabisbusinessexecutive.com.