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Seth Yakatan On California, Low Equity Valuations & Debt Refinancing

By Shadd Dales On Oct 4, 2024

Seth Yakatan of Katan Associates International, and a capital markets advisor to Glass House Brands, joins host Shadd Dales and Anthony Varrell on the Trade To Black podcast to discuss cannabis investment trends and the challenges on the west coast. The state of California is experiencing regulatory growing pains as Governor Gavin Newsom launched an emergency set of changes that impact the hemp market, and the state now faces a lawsuit as a result.

Newsom said that when he enacted his ban that these emergency regulations were meant to prevent the sale of hemp products which contain measurable levels of THC and intoxicating cannabinoids to minors. This effectively bans the sale of many hemp food, beverage and dietary products which may contain THC, sets the age of purchase of hemp products to 21 years old, and limits the number of products per package.

The lawsuit was filed against the state by a number of hemp companies who have stated that this is equivalent to “akin to requiring candy to stop containing sugar.” Among the plaintiffs are also Cheech and Chong.

We’ll explore the reasons why California is proving a difficult environment for cannabis businesses between regulatory complexity, declining retail performance, and the struggle of many companies to remain profitable. Yet despite this, the state remains central to the cannabis industry’s brand development.

What is the role of hemp products in California? We discuss hemp production and distribution, which is easy in comparison to cannabis because the cannabis industry faces far greater standards and oversight.

Was the governor right to ban hemp products that contain THC? Governor Newsom’s reasoning seems unclear, unless one speculates the ban may help protect the regulated cannabis market by eliminating competition from intoxicating hemp-derived products, which do not face the same level of scrutiny.

Looking outward, how bright is the future for the cannabis and hemp industries? Be sure to join us as we talk cannabis investment trends and stock market potentials with Seth Yakatan.

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Shadd Dales

Shadd Dales is the Founder and President of The Dales Report and has an extensive background in the business media industry.

His work translates into over 15 years in mainstream media that included roles with BNN Bloomberg, CTV Properties and the iHeart Radio Network.

Shadd is considered one of the leading on air talents in both the cannabis and psychedelic space and has interviewed some of the most notable CEO names in the industry.

Shadd’s vision is to establish a content platform that is equivalent to a mainstream broadcast produced in a format that is relevant for today’s investor.