In this new interview taking place at the Benzinga Cannabis Capital Conference, TDR Founder spoke with MariMed, Inc (OTCMKTS: MRMD, CSE: MRMD) CEO John Levine, and CFO Susan Villare. On the docket were a variety of cannabis related discussions focusing on the company and on the macro market in general.
On the issue of receivership, MariMed sees other opportunities to perhaps acquire assets as cannabis operators struggle in the current climate. Some of these struggles are not necessarily related to industry fundamentals, but rather, an under-estimation of the impacts of tax code 280e. Under such provisions, unsuspecting operators may be forced to pay tax on gross sales even if they are losing moment after expense considerations, putting these operators even more deeply into the red.
IRS tax code 280E refers to a provision of the United States Internal Revenue Code that prohibits businesses involved in the sale of controlled substances, as defined by the Controlled Substances Act, from deducting normal business expenses from their taxable income.
Specifically, the code states that no deduction or credit is allowed for any amount paid or incurred during the taxable year in carrying on a trade or business if such trade or business consists of trafficking in controlled substances, which are classified as Schedule I or Schedule II substances under the Act.
Currently, cannabis is listed as a Schedule I drug, on par with heroin and cocaine and considered to have no medicinal value.
CEO John Levine also reveals how MariMed explored the possibility of acquiring a license to operate in downtown Boston area due to superior traffic profile. Specifically, the company explored a location close to the Boston Garden—home of the NBA’s Boston Celtics and NHL’s Boston Bruins. However, due to certain stipulations on when and how late the company could stay open, the idea never came to fruition.
Overall, a fascinating interview with one of the few net income multi-state operators in U.S. cannabis.
Click here to view our previous cannabis podcast with Pelorus Equity Group Managing Partner, Travis Goad.
__________
* In accordance with an executed agreement between The Dales Report and MariMed, The Dales Report is engaged with the aforementioned on a 12-month contract for $7,500 per month, with the purpose of publicly disseminating information pertaining to MariMed via The Dales Report’s media assets, encompassing its website, diverse social media platforms, and YouTube channel. Compensation for The Dales Report services involves the receipt of a predefined monetary consideration, which may, on certain occasions, encompass ordinary shares in instances where monetary compensation was not obtained. In such instances where share compensation was received, The Dales Report hereby asserts the right to engage in the acquisition or disposition of such shares subsequent to the conclusion of the aforementioned contractual period, in compliance with provincial, state, and federal securities regulations. Please refer to the “Disclosures” section below, which is to be interpreted in conjunction with this disclaimer.
