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ARTICLE · 04 SEPTEMBER 2026

Why Financial Credibility Impacts Who Gets Funded In Cannabis

MGO CPA LLP
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Access to capital in the cannabis industry is increasingly driven by financial credibility, not just market opportunity or growth potential.

United StatesAccounting and Audit
Macias Gini & O'Connell
Macias Gini & O'Connell
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Key Takeaways: 

  • Access to capital in the cannabis industry is increasingly driven by financial credibility, not just market opportunity or growth potential.
  • Outdated accounting, inventory, and reporting systems not only create operational friction by generating bad data and misleading KPIs, they are a barrier to accessing capital.
  • Accurate, organized, and well-documented financial records are essential to show investors compliance with tax regulations, including IRC Section 280E for adult-use operations; for medical-only companies, they also demonstrate tax efficiency, including the ability to leverage newly available federal tax credits such as the R&D tax credit.

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As federal cannabis policy moves through a period of significant change, operators are facing an evolving capital environment. The April reclassification of medical cannabis to Schedule III has expanded the population of potential investors and lenders for such companies. At the same time, the uncertainty around

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