The Grass is Not Always Greener for Publicly-Traded Cannabis Companies

CANL chart
Chart of CannLabs (CANL) since its reverse-merger in mid-2014

Taking a marijuana company public is often viewed as a great exit strategy, usually by entrepreneurs who are dreaming of a big payout.

It can also be a quick route to disaster, however, especially in situations involving a reverse merger – the most common method of going public in the marijuana space.

Aside from increased scrutiny, regulations, reporting requirements and costs, entrepreneurs who spent blood, sweat and tears building up their companies can lose control of the business literally overnight. In a worse-case scenario, founders can even be forced out of the company completely.

Read John Schroyer’s “Going Public Comes With Unexpected Potholes, Pitfalls for Cannabis Entrepreneurs”:

Published by NCV Newswire
NCV Newswire
The NCV Newswire by New Cannabis Ventures aims to curate high quality content and information about leading cannabis companies to help our readers filter out the noise and to stay on top of the most important cannabis business news. The NCV Newswire is hand-curated by an editor and not automated in anyway. Have a confidential news tip? Get in touch.

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