Business
California cannabis companies hire credit group to monitor retailers over unpaid invoices
A group of California distributors and brands representing more than half the state’s wholesale B2B cannabis market has hired a credit association to rate retailers in the hopes of reducing the hundreds of thousands of dollars in unpaid invoices – and reining in repeat offenders.
The Credit Management Association (CMA), a nonprofit based in suburban Los Angeles, is analyzing accounts receivables and other documents from more than a dozen distributors and brands.
The CMA plans to email each of the distributors and brands a “do not sell list” of 25 California retailers that don’t pay their bills on time – a seismic problem in the world’s largest cannabis market and across the United States.
The “red” list, according to group members, highlights retailers and delivery providers that owe at least $25,000 for products and are 90 days late or more on payments, often categorized as delinquent.
(In California, consumers pay delivery providers directly for products delivered, and in turn, delivery providers pay suppliers.)
Together, the companies on the “do not sell” list owe at least an estimated $625,000 – likely indicating that retailers and delivery providers statewide (including those not on the list) collectively owe more than $1 million in unpaid invoices.
The issue, like most in the cannabis industry, isn’t as clear cut as it seems.
Retailers and delivery operators have been struggling for years to turn a profit, burdened by high taxes, regulation and competition from the illicit market.
Most retailers don’t set out to become bad actors. They fall behind on payments and struggle to claw out of debt, according to industry sources.
The credit association is onboarding new members, facilitating group meetings and aggregating data sets to create business credit reports.
The first report is expected to be released to members in a few weeks, according to members who spoke with MJBizDaily.
“The goal of this group is to create a bit more stability and financial structure in the supply chain of cannabis,” said Vince Ning, founder and co-CEO of California cannabis distributor Nabis, the San Francisco company spearheading the accountability effort.
Nabis distributes about $400 million worth of products annually, more than 20% of the entire wholesale market, according to Ning.
It also handles collections for brand customers, with Nabis pocketing some of the money owed by retailers to cover its own costs for spearheading the collection effort.
“So when a retailer doesn’t pay, we bite the bullet, too,” Ning said.
Brands in a bind
Nearly every brand, distributor and manufacturer in California is dealing with unpaid invoices, a problem that has rippled through the market for years but really ramped in mid-2022 as industry stocks began reeling and capital dried up, industry sources told MJBizDaily.
Social equity licensees and brands, including Black- and Latino-owned businesses, have been particularly hit hard since most lack capital reserves and resources.
Presidential Cannabis, a member of the credit association and one of the top-selling blunt and pre-roll brands in California, has a client in the Inland Empire that stopped answering calls after racking up $180,000 in unpaid invoices.
Another client ordered $120,000 worth of product right before going out of business.
The setbacks caused Presidential – a Black-owned Los Angeles brand – to change policy to demand payment or close its doors.
It’s a predicament facing countless brands that rely on retailers and delivery providers to sell their products.
The hard line has hurt sales at Presidential, which had doubled and tripled revenue annually before last year.
“A lot of our bigger clients we had to stop selling to because they weren’t paying,” said Everett Smith, co-founder and CEO.
“Some of us brands have bent over backwards to have our product in the stores, do whatever the stores asked us to do. And then to just string us along just doesn’t seem right or fair,” he added.
“We don’t have any investors. Every dollar counts.”
Credit check
Sunderstorm, which manufactures the gummy brand Kanha and self-distributes its products, has utilized collection agencies as a last resort, with varying success.
Since most firms take a 20% cut, any debt resolution typically translates into a business loss.
The San Francisco Bay Area company did have success suing one delivery operator, recouping $15,000 of back pay, minus collection fees.
A small claims filing is typically not an option for cannabis businesses because outstanding bills often exceed the $5,000 court maximum.
Sunderstorm allocates $30,000 a month toward bad-debt reserves to cover the cost of uncollected receivables.
“That’s a meaningful number for my business,” said co-founder and president Keith Cich, who highlights this trickle-down effect on the industry when invoices are unpaid.
If retailers and distributors can’t pay brands, brands can’t pay extractors or packaging companies, extraction operators can’t pay cultivators – and the cycle continues.
“It becomes this self-fulfilling negative shockwave through the entire ecosystem,” Cich said.
“One of the main reasons we got together as an industry consortium was that the entire supply chain gets threatened when one part of the supply chain can’t pay their bills.”
Before California regulators shifted the 15% excise tax collection last year from distributors to retailers, distributors such as Nabis were losing significant amounts of money prepaying the state on excise taxes without collecting on it from customers.
The balance is now a manageable few hundred thousand dollars, according to Ning.
“At one point, it was several million. Through these measures and tightening our credit controls, we’ve whittled down the balance significantly.”
Another industry evolution
While credit reports have been common for decades in mainstream industries such as banking, lending and government, they represent an emerging practice in the cannabis space.
Fitch Ratings, one of three New York-based global credit-rating agencies, started covering Canopy Growth Corp. only in the past few years.
Along with Moody’s and Standard & Poor’s, the other two dominant players in the global credit scene, the agencies assign letter grades to conglomerates, securities, government agencies and even entire countries based on their ability to meet financial obligations.
The California cannabis group represents CMA’s first foray into the marijuana sector.
“We commend leaders in that industry who see the necessity of protecting their accounts receivable and managing credit risk,” CMA Chief Executive Richard Adams told MJBizDaily via email.
“CMA has welcomed many emerging industries in our 140-year history, and we look forward to a mutually beneficial business relationship here as well.
“I’m not aware of any other business credit associations that are active in this market sector.”
Precedent for action
Federal and state credit laws regarding alcohol sales have been on the books since the end of the Prohibition Era.
Under federal law, suppliers can grant credit to retailers only for a maximum of 30 days.
California, like most states, also has credit laws regarding alcohol sales, with fines levied against suppliers or retailers – and potential license suspension – for failing to comply with 30-day credit plans.
New York might be among the first states to authorize these types of laws in the cannabis industry.
The proposed rules in the state’s recently established adult-use market require operators to pay for purchases on credit within 90 days.
Distributors are required to report delinquencies to New York’s Office of Cannabis Management, which has the authority to invalidate agreements.
In New York, like California, licensed cannabis companies are required to buy products from distributors.
California state assembly member Philip Ting hopes to ease the state’s cannabis credit crises with one of the nation’s first credit laws for marijuana sales.
The San Francisco Democrat is the lead sponsor of Assembly Bill 766, which levies stiff penalties against operators skirting credit agreements.
“Quite often, businesses don’t get paid after they supply services, so there’s no real recourse,” Ting said.
His bill requires licensees accepting goods and services worth at least $5,000 to pay invoices no later than 15 days after the due date.
If the invoice is not paid by that time, it would trigger a warning notice from state regulators, who can also issue citations and other disciplinary actions.
The bill also prohibits:
- Licensees from purchasing goods and services from other operators on credit until the invoice is paid in full.
- The invoice due date being no later than 30 days from the time goods or services are sold.
“What we want to do with AB 766 is provide credit protection to all cannabis licensees to ensure they receive payments,” Ting said.
“This will ensure a stable flow of goods and payments across the supply chain.”
Airports across India witnessed scenes of distress and confusion as thousands of passengers were stranded due to IndiGo’s massive flight disruptions. Families with medical emergencies, funerals, and personal crises were left helpless as the airline cancelled hundreds of flights without adequate communication or support.
Passengers described desperate situations — a mother pleading for sanitary pads for her daughter, a woman unable to transport her husband’s coffin, and others stranded while trying to reach family funerals or hospitals. “It was like a lockdown at the airport,” one passenger said, describing the panic that unfolded as IndiGo’s mismanagement crippled operations nationwide.
Root Cause: IndiGo’s Market Monopoly
The turmoil, industry experts argue, stems from IndiGo’s monopolistic control over India’s domestic aviation market. The airline operates nearly 2,100 flights daily and holds around 60% market share — meaning every second plane flying within India belongs to IndiGo.
This dominance has given the company unparalleled influence. When IndiGo falters, the entire aviation system suffers. Passengers are left with few alternatives, as other airlines lack capacity to absorb stranded travellers. The result: skyrocketing ticket prices, chaos at terminals, and total dependence on a single private operator.
Aviation pioneer Captain G.R. Gopinath, founder of Air Deccan, criticised the government’s inaction, noting that on some routes, IndiGo’s economy fares surged to ₹1 lakh. He compared the situation to a hostage crisis, writing that the airline “held the system ransom” and forced regulators to defer new safety rules meant to protect pilots and passengers.
Government Intervention and Regulatory Weakness
The crisis erupted after IndiGo failed to comply with the Flight Duty Time Limitations (FDTL) — rules introduced by the DGCA in January 2024 requiring adequate rest for pilots. Despite having nearly two years to adapt, IndiGo blamed the rule for operational disruptions, citing a shortage of pilots.
Under mounting public pressure, the government stepped in, temporarily relaxing FDTL norms and capping airfare hikes. Officials claimed the move was to protect passengers, but analysts say it exposed the state’s vulnerability to corporate monopolies. “The government had no option but to yield,” said one aviation policy expert, pointing out that ignoring safety regulations for short-term relief could have long-term consequences.
The crisis also rekindled memories of the June 2025 Air India crash near London, which claimed over 240 lives. Experts warn that compromising pilot rest and safety standards to maintain flight schedules could risk another tragedy.
If Telecom Giants Fail: A National Paralysis
The article raises a troubling question — what if a similar crisis struck the telecom sector, where Jio and Airtel together control nearly 80% of subscribers and serve over 780 million users?
If both networks failed simultaneously, the repercussions would be catastrophic. Internet shutdowns would halt UPI transactions, online banking, OTP verifications, video calls, OTT streaming, and emergency communications. Critical services such as airports, hospitals, stock exchanges, and small businesses — many of which rely on WhatsApp and digital payments — would come to a standstill.
In essence, a telecom breakdown could paralyse India’s digital economy, exposing the nation’s dependence on a duopoly.
E-commerce Monopoly: Another Fragile Ecosystem
The same risk looms over the e-commerce sector, where Amazon and Flipkart dominate nearly 80% of the market. A disruption similar to IndiGo’s could cripple daily life — halting delivery of groceries, medicines, and essential goods, freezing refunds and customer support, and leaving small sellers without platforms to trade.
Local retailers, freed from competition, might exploit shortages by inflating prices. Such a scenario underscores the perils of market centralisation in sectors critical to everyday living.
A Wake-Up Call for Regulators
The IndiGo crisis, analysts say, is a warning shot for policymakers and regulators. A single company’s operational failure exposed systemic weaknesses in India’s infrastructure and consumer protection mechanisms.
As the aviation regulator DGCA investigates and IndiGo works to restore normalcy, the broader lesson remains clear: unchecked monopoly power in any essential service — whether air travel, telecom, or e-commerce — poses a direct threat to economic stability and citizen welfare.
Without stronger competition laws, redundancy frameworks, and regulatory oversight, India risks repeating this crisis across multiple sectors — each time with millions of citizens paying the price.
Agriculture & Life Sciences
Canada’s Cannabis Industry Urges Government to Support Growing Export Market
BuzzBuzz Cannabis Business News — 24 November 2025
Canada’s cannabis sector is calling on federal and provincial governments to recognize its fast-growing export potential and extend the same support other regulated industries receive. Industry leaders warn that Canada is losing its early global advantage due to slow regulatory processes, lack of trade promotion, and limited access to government-backed financing.
Canada’s medical-cannabis exporters now generate more than half a billion dollars annually and ship products to major markets including Germany, the UK, Australia, and Poland. Despite this, cannabis remains largely absent from Canada’s official trade and export strategies.
Industry Calls for Streamlined Export System
Paul McCarthy, President of the Cannabis Council of Canada, says the country has everything required to dominate the global medical cannabis trade—except government alignment.
“Our requests are simple,” McCarthy said. “Expedite Health Canada’s export-permit process, integrate cannabis into federal export programs like Global Affairs Canada trade missions and CanExport, and ensure provinces include cannabis in their export strategies.”
He stressed the need for mutual recognition agreements with importing countries to eliminate redundant testing and documentation. Access to Export Development Canada (EDC) and Business Development Bank of Canada (BDC) services also remains off-limits to cannabis exporters, placing them at a steep disadvantage.
“This industry does not just need permission to operate,” McCarthy added. “It needs to be treated like every other legitimate contributor to Canada’s trade objectives.”
Competitors Are Moving Faster
McCarthy warns that while Canada pioneered medical cannabis standards, other countries are rapidly advancing with more flexible and export-friendly systems.
“Faster approvals, lower compliance costs, and active government-backed strategies are helping other nations catch up,” he said. “Canada’s regulatory friction is already costing us global market share.”
Export permits currently must be issued for each shipment—a process that can take weeks—and Canadian testing standards often differ from international requirements, forcing companies to repeat expensive compliance checks.
High Tide CEO: Canada Needs a National Export Strategy
Raj Grover, CEO of High Tide Inc., says Canada risks surrendering its leadership if policymakers remain inactive.
“Canada developed the world’s most advanced cannabis regulatory system and contributed $76.5 billion to GDP since legalization,” Grover said. “But without a National Cannabis Export Strategy, we will lose ground to Australia, Israel, Portugal, and other emerging competitors.”
He noted that Canada’s industry table created by Innovation, Science and Economic Development Canada (ISED) has not met in more than a year—an opportunity wasted.
Grover urged the federal government to introduce domestic GMP certification and potency standards to streamline international market access. “Canadian producers must currently get GMP approval country by country. It’s duplicative and costly. Canada should be setting global benchmarks, not chasing them.”
Germany: A Key Market for Canadian Firms
High Tide recently expanded into Europe with its majority acquisition of Germany’s Remexian Pharma GmbH, giving the company a direct import and distribution channel in Europe’s largest medical-cannabis market.
“Our German strategy is already structured for success,” Grover said. “Through Remexian, we can supply premium medical cannabis at the lowest possible price, helping meet Germany’s quality and cost demands.”
Grover also warned that U.S. companies are already purchasing Canadian firms to stage their own international expansion—another sign that Canada’s leadership position is slipping.
Government Response Remains Limited
In response to industry concerns, a Global Affairs Canada spokesperson said the Trade Commissioner Service “continues to support exporters of cannabis for medical and scientific purposes that have obtained Health Canada permits.”
However, industry leaders argue that this support is minimal and does not include key tools such as trade missions, export credits, or bilateral agreements that other sectors routinely receive.
A Closing Window of Opportunity
With medical-cannabis exports already exceeding $500 million annually, industry executives say Canada must act quickly to preserve its competitive edge.
As McCarthy warns, without coordinated government support, Canada risks losing high-value pharmaceutical manufacturing, research investments, and thousands of skilled jobs.
And as Grover’s expansion into Germany demonstrates, the industry is moving forward—but whether Canada moves with it may determine if the country remains a global leader or becomes a pioneer that let others capitalize on its breakthroughs.
Business
A Tipping Point for Cannabis: President Trump Champions CBD & Cannabis Science on Truth Social
When the President of the United States shares a video about the life changing potential of hemp derived CBD on his personal social media platform, it is more than news, it is a cultural shift.
For decades our government lied to us about cannabis. It demonized the plant, waged war on its users, and filled prisons while allowing pharmaceutical companies to flood the nation with addictive and deadly drugs. For over a century we have been fighting uphill, not just for legalization, but for truth, for science, and for the right to heal ourselves naturally.
Now in 2025, the most powerful political figure on Earth is using his own voice and platform to talk about the endocannabinoid system and the science backed benefits of CBD. That is monumental. It is validation for everyone who has fought, been arrested, been silenced, and been dismissed for telling this truth. The President’s video post is already being described as a pivotal moment in cannabis history, and President Trump CBD Cannabis Science Truth Social is trending across platforms as advocates celebrate the breakthrough.
The Science Behind the Endocannabinoid System
The video begins by introducing something most people, including many doctors, still know little about, the endocannabinoid system. Discovered in the 1990s, the ECS is a network of receptors and signaling molecules that works as the body’s master regulator, coordinating communication between major systems like the nervous, immune, cardiovascular, and digestive systems.
The roots of this discovery go back much further. CBD was first isolated in 1940 by American chemist Roger Adams, but it was Dr. Raphael Mechoulam, an Israeli organic chemist, who fully elucidated the chemical structure of CBD and identified its stereochemistry in the 1960s. His pioneering work not only opened the door to modern cannabinoid science but also earned him the title “Godfather of Cannabis Research.” It was this foundation that led to the identification of the endocannabinoid system itself decades later, revealing how cannabinoids interact with our physiology on a fundamental level.
The ECS is now widely recognized as a vital part of human biology, with extensive research supported by the National Institutes of Health. When functioning properly, the ECS acts like the conductor of an orchestra, ensuring every section plays in harmony. As we age, the system weakens. That imbalance is linked to inflammation, chronic pain, cognitive decline, sleep problems, and many other conditions associated with aging.
Mainstream medicine often addresses these issues with pharmaceutical band aids, dangerous and addictive drugs that treat symptoms rather than root causes. Lifestyle changes such as diet and exercise help, but they only partially support the ECS and do so slowly over time.
Hemp Derived CBD: A Game Changer for Aging
Here is where the science gets exciting. As the video explains, the ECS can be restored much more quickly with hemp derived CBD. Strengthening this system naturally helps the body regain balance, reducing pain, improving sleep, lowering stress, slowing disease progression, and even extending healthy lifespan.
It is not theoretical. One in five seniors is already using CBD to manage pain, arthritis, cancer symptoms, sleep disorders, Alzheimer’s, and more. Despite decades of research and acknowledgment from institutions like the National Institutes of Health, most physicians receive no training on the ECS. There are still no FDA standards for CBD products on the market. If that were the case for any other class of medicine, it would be considered malpractice.
The World Health Organization has confirmed CBD’s excellent safety profile and non addictive nature in its critical review report. The result is that millions of older Americans are suffering unnecessarily when a safe and natural solution exists.
Hemp derived CBD is a powerful first step in restoring balance to the endocannabinoid system, but it is only part of the picture. Research shows that full spectrum cannabis extracts, which include a broader range of cannabinoids and terpenes, can work even more effectively. Complete concentrated cannabis oil, containing the full spectrum of natural endocannabinoids, may deliver the most profound results for certain patients. Expanding access to these therapies will be essential if we want to unlock the full healing potential of this plant.
The Economic and Social Impact
The video cites a powerful figure. A PricewaterhouseCoopers analysis estimates that fully integrating cannabis into the healthcare system could save the United States nearly 64 billion dollars annually. These savings reflect reduced pharmaceutical dependency, fewer hospitalizations, improved chronic disease outcomes, and enhanced quality of life for aging Americans. You can read more about PwC’s research on healthcare innovation here.
It is a financial argument, but it is also a moral one. Why should our elders endure pain, anxiety, and cognitive decline when nature has given us tools to help them live longer, happier, and healthier lives?
A Call to Action: Finish What the Farm Bill Started
The message concludes by crediting the 2018 Farm Bill, championed by President Trump, for legalizing hemp and laying the groundwork for today’s CBD market. The Farm Bill was just the first step.
Now the call is for bold next moves.
- Educate doctors about the endocannabinoid system
- Include CBD under Medicare coverage
- Provide clear federal standards for CBD quality and dosing
These steps would constitute the most significant senior health reform in modern history, one that would transform aging and cement a powerful legacy for any administration that makes it happen.
What This Means for Future Cannabis Medicine
For those of us who have been in the cannabis community for decades, this is not just another news story. It is a signal that our movement is winning. A conversation that was once criminalized and censored is now being amplified by the President of the United States on his own platform.
It means the science is undeniable. It means the truth can no longer be buried. It means the wall of prohibition is cracking, not just legally, but culturally, scientifically, and politically.
It also means that everything we have been fighting for at 420 Magazine since 1993, education, access, healing, and justice, is finally moving full steam ahead. The President Trump CBD Cannabis Science Truth Social moment is proof that science and policy are finally converging.
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