Why Institutional Capital Is Still Waiting on Cannabis
On the latest Trade To Black podcast presented by Flowhub, hosts Shadd Dales and Anthony Varrell welcome two new guests to explore the evolving landscape of the cannabis industry in 2026. John Pinto, Founder and Managing Member from Soje Capital, joins us to explain why institutional capital is still waiting on the sidelines to buy cannabis stocks. Plus, Adam Stettner, CEO from FundCanna joins us to talk through data around delinquent payments in the cannabis industry.
Adam Stettner, CEO of FundCanna, opens the discussion by shedding light on a troubling statistic: nearly $4 billion in delinquent payments plague the $30 billion cannabis sector. He attributed this to vendors becoming de facto lenders due to misaligned payment and revenue cycles. Stettner emphasized the need for financial tools tailored to cannabis’s unique structure, explaining that FundCanna’s credit products aim to smooth cash flow and support businesses as they move from survival to strategy mode.
Rescheduling cannabis and eliminating 280E tax burdens would significantly improve liquidity, allowing companies to innovate, expand vertically, and scale. However, such progress hinges on broader federal normalization and access to traditional financial systems.
In the second segment, John Pinto of Soje Capital offers an insider’s perspective on institutional investment, and why so many institutional capital investors are waiting to buy cannabis stock. Most institutional money exited the space due to cannabis’s Schedule I classification. Rescheduling could change all that.
Pinto argued that real momentum won’t begin until cannabis is rescheduled, FinCEN adjusts its guidelines, and stocks are uplisted to major exchanges. While Schedule III status would attract service providers and wealth managers, full institutional participation requires structural market reforms. Despite setbacks—like the December 18th market pullback following the executive order—Pinto maintains that value remains in the sector for savvy investors willing to wait out regulatory progress.
Both guests agreed that while momentum is finally building, expectations must be managed. Rescheduling could unlock broader banking services, credit card transactions, and increased enforcement of illicit markets—steps seen as essential to reversing the “price-taker” perception dogging the industry.
Tune in for the full interviews!
