The acronym SPAC is showing up more and more in relation to the cannabis industry. SPAC IPOs raised, on average, $231 million in 2019 and $312 million thus far in 2020. SPACs are accountable for more than $2.5 billion raised in the cannabis industry.
Many cannabis business owners draw a salary from the profit of their cannabis venture. Unless you are running a nonprofit, certain business entities allow you to take a reasonable salary from your cannabis operation. You may be required to earn directly from your cannabis interest.
In every industry, bad debts can happen for a variety of reasons: fraud, bankruptcy, and other financial problems make some debts uncollectible. The COVID-19 pandemic and ensuing economic chaos have increased the likelihood that cannabis entrepreneurs will have to deal with bad debt.