Every movement needs a leader, and it seems the cannabis industry has found one in U.S. Representative Ed Perlmutter of Colorado. He is the sponsor of the Secure and Fair Enforcement Banking Act of 2021 (“SAFE”), a legislative bill that would provide cannabis businesses with improved access to mainstream banking services. (Kyle Jaeger, Marijuana Moment). In April, the House approved SAFE by a vote of 321 to 101. (The Office of Representative Ed Perlmutter). SAFE now sits in purgatory while the U.S. Senate debates its merits. (Christopher Butler, Boston.com). This post examines the impact SAFE would have on the cannabis industry in the context of the industry’s current standing in the realm of public opinion and under current legal structures. . .
Read MoreSPAC (pronounced “spack”) is a unique type of company that offers radical, but possibly ill-advised, investment opportunities. (John Hyatt, Nasdaq). The letters in the SPAC acronym stand for “special purpose acquisition company.” (Anna-Louise Jackson and Benjamin Curry, Forbes). Many SPACs are also referred to as “blank check” companies. Id. This secondary name “blank check” is fitting given the purpose of a SPAC, which is to operate as a publicly traded company and to raise money despite providing no product or service. . .
Read MoreSeventy percent of American consumers in 2021 want their favorite companies to make a positive social and environmental impact. (Business Wire). A willingness to socially and environmentally improve society is therefore more than good ethics—it is good business. Beyond consumer sales, many companies raise capital by attracting investments based on their environmental, social, and governance efforts (“ESG”). (James Chen, Investopedia). ESG investing criteria represent the broad non-financial factors investors increasingly apply to their analysis of potential investments. (CFA Institute). Although traditionally ESG standards are not a formal part of financial reporting requirements, ESG is rapidly becoming a commonly recognized investment metric. . .
Read MoreTrains are the future of a greener and more interconnected economy. In March 2021, Canadian Pacific Railway (“CPR”) and Kansas City Southern Railway Company (“KCS”) publicly announced that they would merge, a move that highlighted the railroad industry’s potential to modernize American commerce. (Dan Ronan, Transport Topics). With its promise to create the first United States-Mexico-Canada rail network, the deal inspired hope in easier trade and localized networks across North America. Id. Shortly after the merger announcement, in April 2021, KCS abandoned this deal for a more lucrative merger with Canada National Railway (“CN”), a competitor of CPR. (Greg Roumeliotis, Reuters)…
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