On May 21, 2024, the Drug Enforcement Agency (DEA) filed
the Proposed
Rule to move marijuana from Schedule I of the Controlled
Substances Act (CSA) to Schedule III of the CSA. In light of the
rescheduling marijuana news, industry insiders anticipate a
significant increase in cannabis-related investments and
acquisition activity. While this anticipated increase in activity
is exciting, it is no secret that those who have already invested
capital into the cannabis industry have learned some hard lessons
over the last decade.
Based on those lessons learned, we anticipate capital will be
deployed much more selectively going forward. While not every
cannabis business will be a prime candidate for investment or
acquisition, there are actions prospective investors and owners of
marijuana-related businesses can take now to
position themselves to take advantage of the predicted influx of
capital into the industry, regardless of whether their business
goals include expansion
