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For plant-touching marijuana companies, most lending options tied to property

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When it comes to borrowing money as a marijuana company, most roads lead to real estate.

“The industry has challenges accessing capital markets that other industries do not,” Travis Goad, managing partner at Pelorus Equity Group, said of plant-touching marijuana companies.

“In a fully developed market, there’s real estate as one lending source and then there are pure corporate loans as another lending source. In this space, the vast majority of financing is tied to your real estate,” added Goad, whose firm is a cannabis-focused real estate lender.

Applications for cannabis business licenses often require proof of real estate, leaving precious little capital for successful applicants to get their companies up and running.

For marijuana businesses that own property, there are three main ways to borrow, according to Goad, who runs Pelorus’ New York office:

Real estate lending: These loans require borrowers to contribute 25%-40% in equity. The other 60%-75% of the facility’s cost is returned to the borrower in the form of a mortgage, which can be used for construction and other business purposes.

Sale-leaseback agreements: Some finance companies offering sale-leaseback agreements will purchase a property for 100% of a site’s cost to complete, though financing costs are typically higher than with traditional real estate lending.

Business-development company: Lenders in this category might offer up to 180% of a property’s value. However, the higher proceeds come with stringent corporate covenants, higher costs and often require giving up board seats or other control to the lender.

Lenders are looking for hard assets to back their loans, and few options exist for no-asset lending in the cannabis industry.

Shopping around

Dana Arvidson, chief operating officer of Boston-based Tilt Holdings, said that when his company started looking for options to raise funds, the executive team met with the “main providers in the market.”

Tilt, which provides cannabis technology and hardware as well as cultivation and  manufacturing, let the lenders know that its executives were meeting with other groups, the process was competitive and they were looking for the “most attractive rates and terms possible.”

Tilt ultimately chose Innovative Industrial Properties (IIPR), a San Diego-based real estate investment trust, to fund a $40 million sale-leaseback agreement on a 104,000-square-foot cultivation and manufacturing facility in Taunton, Massachusetts. The first deal closed in May 2022, and the multistate operator expects to close a second sale-leaseback on a cultivation-manufacturing property in White Haven, Pennsylvania, this quarter.

“We had done this calculus leading up to the transaction that we did in May of last year. One option that we explored pretty closely was to finance the property specifically with a mortgage, which can be pretty attractive in some ways, because you can get bank-level interest rates and retain ownership of the property,” Arvidson said.

“The challenge that we found with bank financing is that banks are somewhat limited in how they can value cannabis cultivation properties, given the federal status of cannabis. They don’t have the ability to value the property at quite the same level as a sale-leaseback.

“Given that, for us, the purpose of the (funding) was ultimately to retire long-term debt, it made the most sense for us to enter into a sale-leaseback,” he said.

The Massachusetts sale-leaseback agreement netted Tilt $27 million in proceeds. In exchange, Tilt will lease the facility back from IIPR for 20 years, with the possibility of two, five-year extensions.

Transactions slowing

In early January, Goad said Pelorus was offering construction loans with interest rates in the “mid-teens” and rates for “stabilized loans,” or facilities that are already operational, starting in the low teens.

Paul Smithers, CEO of IIPR, told MJBizMagazine via email that, “We continue to see 15-20-year lease terms and low- to mid- double-digit initial yields, with fixed-rate annual escalations.”

According to New York City-based Viridian Capital Advisors, cannabis capital raises were down 64% from the previous year as of Oct. 28, 2022, with debt financing accounting for more than 95% of all capital raised.

IIPR’s sale-leaseback deals, too, were down more than 75% from the previous year as of Sept. 30, 2022, according to an investor presentation by the REIT.

Smithers said that “all capital providers to the cannabis industry saw a slowdown in 2022 due to various headwinds experienced across the industry: lack of capital availability across the board and ever more stringent underwriting requirements.”

“This is not to say that the demand for capital—and specifically real estate capital—has waned in a material way from prior years, but sale-leaseback deal activity can mirror the broader capital raising/M&A ebbs and flows experienced by the industry in general.”

Al Brooks, head of commercial real estate for banking giant JPMorgan Chase & Co., said in a December 2022 report that he expects “challenges ahead” in 2023.

“Retail is at a crossroads, and the future of office space is unclear. Plus, supply chain issues persist, and inflation is near 40-year highs, prompting the (Federal Reserve) to steadily increase interest rates,” Brooks wrote.

 Weighing the options

Boca Raton, Florida-based multistate operator Jushi Holdings took on a sale-leaseback deal when it acquired Pennsylvania Medical Solutions (PAMS), a grower-processor with operations in Scranton, Pennsylvania, from Vireo Health in 2020.

“When we inherited the business, we inherited the current lease with the current market cap rates and the dollars that have been put toward the building that we are moving into,” said Trent Woloveck, chief strategy director at Jushi.

Woloveck said that Jushi carefully considered the sale-leaseback deal when it was conducting due diligence on the PAMS acquisition, given that Jushi had been able to grow its own business using other funding tools and assuming minimal debt.

“Financing other large capex (capital expenditure) projects … off our own balance sheet … has allowed us flexibility as we continue to move forward and be in a better position to take cheaper debt,” Woloveck said. “The issue with the sale-leaseback is it’s forever.”

While traditional real estate loans often have a clause for early repayment, sale-leaseback agreements are typically for 15-20 years, and refinancing options are few.

Goad, the marijuana lender from Pelorus, posited that “when there’s a legalization event … you don’t get to benefit from that, because you’ve locked in today’s cost of capital, and it goes up every year.”

“When all your competitors may be able to go borrow at 7%, you are stuck paying 12% or 15%,” he said.

That said, the timing of legalization is anyone’s guess.

Smithers, meanwhile, said that the long-term nature of sale-leasebacks provide operators with “long-term control over their mission-critical facilities … without the added risk of near-term maturity dates.”

Doubling down

In the case of Jushi’s Pennsylvania facility, the previous owner entered a 15-year, $8.6 million sale-leaseback deal in 2018. The amount included $2.8 million worth of tenant improvements on the 89,000-square-foot industrial space.

In 2021, after acquiring the property, Jushi expanded its agreement with IIPR for an additional $30 million. At the time, the MSO announced it would use the extra cash to finish building out the facility and expand it by 40,000 square feet.

Vireo’s initial sale-leaseback agreement with IIPR—the largest provider of such deals to the marijuana industry—was for annualized aggregate base rent equal to 15% of the sum of the purchase price and tenant improvements. In addition, rent was subject to annual increases of 3.5% for the term of the lease.

Woloveck said that Jushi has “done subsequent borrows on the property in deals with IIPR, and we’ve been able to negotiate a lower cap rates based on our credit.

“Those have been at different rates than what the original deal was struck at,” he added.

In December, Jushi entered a $2 million sale-leaseback deal with Los Angeles-based XS Financial, a capital financing provider, for heavy equipment such as Auto Cure, which automates the cannabis drying and curing process.

“Things that IIPR wouldn’t give us credit for roll into the principal amount. XS is a backstop from that perspective,” Woloveck said.

Source: https://mjbizdaily.com/for-plant-touching-marijuana-companies-most-lending-options-tied-to-property/

Aviation

IndiGo Crisis Exposes Risks of Monopoly: What If Telecom or E-commerce Collapses Next?

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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.

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Agriculture & Life Sciences

Canada’s Cannabis Industry Urges Government to Support Growing Export Market

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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.

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A Tipping Point for Cannabis: President Trump Champions CBD & Cannabis Science on Truth Social

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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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