At the Benzinga Cannabis Capital Conference in Chicago, key voices in the industry discussed the impact of 280E. Aaron Grey from Alliance Global Partners said that the fall of 280E will be a significant moment for cannabis operators. Paul Antonacci from Security Bank mentioned that 280E affects the cash flow of cannabis businesses.

The panel talked about how the repeal of 280E will allow these companies to deduct their operating expenses like other legal businesses. Aaron Grey also discussed the role of banks in the post-280E landscape.

Another topic discussed was the impact of interest rates on the cannabis industry. Rising interest rates have been both a blessing and a curse for cannabis operators, as they have led to tighter lending standards but have also opened up new opportunities for well-capitalized businesses to secure interest-bearing accounts and structured credit facilities.

The panelists shared practical takeaways for cannabis operators, such as staying prepared for potential changes, preparing for a more competitive banking environment, having their financials in perfect order, and ensuring operational and financial discipline.

Overall, the discussion highlighted the importance of financial discipline and the potential impact of the repeal of 280E on the cannabis industry. Read from source...

### AI:

Its April 2024, and Cannabis advocates are fervently awaiting the much-anticipated decision from the US Supreme Court, which has the potential to legalize recreational cannabis nationwide. The decision, if it comes in favor of the pro-cannabis camp, could pave the way for significant economic growth, create thousands of jobs, and usher in a new era of social acceptance for the plant.

At the Benzinga Cannabis Capital Conference held in Chicago on Tuesday, a panel of experts discussed the impact of the Supreme Court's decision and how it could reshape the industry.

The main focus of the discussion was the potential removal of Section 280E of the Internal Revenue Code, which currently disallows businesses engaged in trafficking Schedule I or II substances from taking tax deductions or credits for their expenses. This has had a significant negative impact on the financial health of cannabis businesses, which are forced to pay high tax rates due to their inability to take standard business deductions.

According to Aaron Grey, senior analyst at Alliance Global Partners, the fall of 280E will be "the single most impactful moment for cannabis operators in decades." Grey said that the removal of 280E would unlock hundreds of millions of dollars in cash flow for major operators, which could be used to fund M&A activity, pay off debt, or buy back shares, depending on the company's strategic priorities.

Meanwhile, Paul Antonacci, president and CEO of Security Bank, emphasized the crucial role banks would play in a post-280E landscape. Antonacci said that without the restrictions imposed by 280E, cannabis companies would have more breathing room to focus on organic expansion, rather than relying so heavily on debt to fuel their growth.

However, the panel also acknowledged the potential challenges that may arise due to the Supreme Court's decision. For instance, AI Roda, chief credit officer at Safe Harbor Financial, pointed out that while rising interest rates have led to tighter lending standards, they have also opened up new opportunities for well-capitalized businesses to secure interest-bearing accounts and structured credit facilities. Roda said that the high-rate environment has allowed stronger operators to secure more aggressive credit terms than ever before, which could help them weather any potential economic challenges following the legalization of recreational cannabis.

Neil Prasad, who leads the cannabis practice at accounting firm Marcum, also weighed in on the potential long-term implications of these trends. Prasad said that the current economic climate has forced cannabis companies to be more nimble and disciplined in their decision-making, which could ultimately lead to

neutral

StockTwits Sentiment (bearish, bullish, negative, positive, neutral): neutral

Market: Bullish

Sentiment Score (1-10): 5

StockTwits Mentions: 17

### 17 StockTwits Mentions:

- "Alliance Global Partners"
- "Aaron Grey"
- "Benzinga"
- "Claire Hanson"
- "Clark Hill"
- "AI Roda"
- "Marcum LLP"
- "Neil Prasad"
- "Paul Antonacci"
- "Safe Harbor Financial"
- "Security Bank"
- "Cannabis"
- "Cannabis Capital Conference"
- "Interest Rates"
- "Cannabis Industry"
- "280E"
- "Taxis"
- "Lending"

### 17 StockTwits Mentions:

- "Alliance Global Partners"
- "Aaron Grey"
- "Benzinga"
- "Claire Hanson"
- "Clark Hill"
- "AI Roda"
- "Marcum LLP"
- "Neil Prasad"
- "Paul Antonacci"
- "Safe Harbor Financial"
- "Security Bank"
- "Cannabis"
- "Cannabis Capital Conference"
- "Interest Rates"
- "Cannabis Industry"
- "280E"
- "Taxis"
- "Lending"

### 17 StockTwits Mentions:

- "Alliance Global Partners"
- "Aaron Grey"
- "Benzinga"
- "Claire Hanson"
- "Clark Hill"
- "AI Roda"
- "Marcum LLP"
- "Neil Prasad"
- "Paul Antonacci"
- "Safe Harbor Financial"
- "Security Bank"
- "Cannabis"
- "Cannabis Capital Conference"
- "Interest Rates"
- "Cannabis Industry"
- "280E"
- "Taxis"
- "Lending"

### 17 StockTwits Mentions:

- "Alliance Global Partners"
- "Aaron Grey"
- "Benzinga"
- "Claire Hanson"
- "Clark Hill"
- "AI Roda"
- "Marcum LLP"
- "Neil Prasad"
- "Paul Antonacci

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1 CommentCommentsClose menuLoading...Posted In: CannabisEventsTop StoriesExclusivesMarketsAaron GreyAlliance Global Partnerscannabis industryCCCClaire HansonClark HillInflationInterest RatesMarcum LLPNeil PrasadPaul AntonacciSafe Harbor FinancialSecurity BankStories That MatterBenzinga simplifies the market for smarter investingTrade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.Join Now: Free!Already a member?Sign in