Cannabis Knowledge & Insights

Receivership for Cannabis Business Investors

As an investor in a cannabis business, you know that some businesses do well and others fail…it’s simply the nature of investing.

Businesses fail for many reasons…bad operations, poor product quality, or simply running out of capital.

And since cannabis business cannot file for Federal bankruptcy protection, what can you do?

With equity investments, you’re most likely out of luck.

BUT, if you made a loan to a cannabis business, then you have an option to help you recover capital and it’s called receivership.

And one detail to note is that investors can act independently with the Court system to appoint a new manager (receiver) for the business to recover their money, and investors don’t need the current business operators to grant them any permission to do this.

Maybe you don’t want to get cash…maybe you want to take over the entire business, which is one part of what we will discuss.  We will even cover how you can buy the business & assets with no additional capital using just your initial investment.

Cannabis business operators…you can voluntarily enter into receivership as well.  This is not a tool just for investors, but it’s out there for your benefit too.

In this video, we will cover: