EXCLUSIVE: Investor Ross Gerber On How Cannabis Rescheduling Could Slash Costs For Companies
As the cannabis industry faces ongoing regulatory challenges, financial constraints remain a significant obstacle to growth.
Ross Gerber, co-founder and CEO of Gerber Kawasaki Wealth and Investment Management and upcoming speaker at Benzinga’s Cannabis Capital Conference, shared his views on the financial difficulties confronting cannabis companies, especially in light of potential federal rescheduling and its effects on accessing capital.
Rescheduling and Its Potential Impact
Gerber sees federal rescheduling as a critical moment for the cannabis industry. He pointed out that many cannabis companies are well-managed but are forced to operate within an “absurd tax environment and regulatory department.” He believes that removing cannabis from the Schedule I classification would lead to a “dramatic improvement in financial performance for the companies.”
Currently, cannabis is still federally illegal and classified as a Schedule I substance, which severely limits the industry’s ability to function like other businesses. Gerber emphasized that if cannabis were rescheduled to a lower category, such as Schedule III, the shift would relieve many of the financial burdens these …