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Reaching consensus on hotly debated issues is rare in the cannabis space, especially when it comes to potential ramifications of marijuana rescheduling.

Some industry experts, such as cannabis hedge fund manager Patrick Rea, are optimistic that a wall of capital will flow into the sector, given the right catalyst.

Others, including banker Peter Su, remain skeptical of any sea change related to investments, given the federal government's prohibition on marijuana.

MJBizDaily interviewed several finance experts to learn their perspectives about the likelihood a tsunami of capital will hit the industry if and when rescheduling occurs.

Rea believes investor sentiment will change if both rescheduling and the elimination of tax burden Section 280E occur, because operator profitability will increase significantly.

"With profitability, investor interest should drive capital into the cannabis industry," said Rea, managing director of the Poseidon Garden Fund, which recently backed two equity deals in the New Jersey market.

"I think it's a boon for the industry, if it does occur. Absolutely."

Su, the director of specialty banking at Hanover Bank in New York, expects debt deals to dominate the financing landscape if and when rescheduling occurs.

"The debt game is so good right now, I really don't see the catalyst making a change anytime in the near future," said Su, who leads Hanover's cannabis banking program.

"In fact, debt will probably get much easier, in a way." Read story >

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• Nevada's Titus, Minnesota's Omar take over Congressional Cannabis Caucus. Read story >

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What marijuana investors should watch for in 2025

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While 2024 brought its share of volatility, regulatory uncertainty and market pressures, this year offers potential opportunities alongside continued challenges.

From a new administration in the White House, federal rescheduling developments and state-level momentum to banking reform prospects, M&A activity and the challenges posed by intoxicating-hemp products, investors will have to navigate a complex industry landscape while staying focused on these key areas expected to shape the industry in the year ahead.

Check out this 2025 investing forecast by MJBizDaily guest columnist Anthony Coniglio of NewLake Capital Partners. Read story >

Agrify sells cannabis cultivation business for $7 million

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Agrify Corp. is selling its cannabis cultivation operation for $7 million to an investment firm affiliated with the company's former CEO, Raymond Chang.

The Troy, Michigan-based operator sold the unit to CP Acquisitions, which is affiliated with Chang, who resigned from Agrify's top post and as board chair in a November management shake-up.

The transaction includes vertical farming units, related assets and Agrify Insights software applications; assumption of liabilities related to the cultivation business; and the termination of two convertible notes held by CP Acquisitions totaling roughly $7 million. Read story >

Marijuana goes national: 7 industry predictions for 2025

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Cannabis industry progress was slow in 2024.

Congress failed to pass marijuana reform bills, and the Drug Enforcement Administration delayed reclassifying marijuana as a legitimate medicine until this year.

Voters largely rejected adult-use legalization - including in Florida, where marijuana multistate operators spent nearly $150 million in a losing effort - giving credence to the idea that easy and available reform efforts have maxed out.

Yet very big changes loom on the horizon.

Relief from the tax burden of Section 280E is closer than ever, and President-elect Donald Trump will soon become the first POTUS to have endorsed an adult-use marijuana legalization measure.

Here are MJBizDaily's seven cannabis industry predictions for 2025. Read story >

Vireo Growth raises $81M in oversubscribed funding round

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Marijuana multistate operator Vireo Growth raised $6 million more than it hoped for in a private placement offering.

The Minneapolis-based company initially planned a $75 million equity raise but instead raised about $81 million.

Vireo plans to use net proceeds from the offering for business development – including growth investments, working capital and general corporate purposes. Read story >

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More Headlines

• What is the economic outlook for cannabis companies in 2025? Read story >
• iAnthus acquires marijuana vape brand Cheetah for $1.5 million. Read story >
• Minnesota adult-use cannabis license applicants start new year with uncertainty, hope. Read story >
• How to start a successful marijuana brand in a down market. Read story >
• Canadian operator Entourage inks deal to go private. Read story >

R E S O U R C E S

• MJBizMagazine Nov/Dec issue: Breaking Through to Profitability
• MJBizCon Replay – View 2024 sessions at home
• Make informed decisions with MJBiz Factbook – Get data
• MJBiz Free Cannabis 101 Course – Sign up and start learning
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MJBizDaily is the leading resource for the cannabis industry, cited by The Wall Street Journal, Forbes and Harvard Business Review. MJBiz also produces the No. 1 cannabis business conference, MJBizCon.

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