Marijuana Business Magazine January 2020

Marijuana Business Magazine | January 2020 104 Question ofthe Month | Trends in 2020 What trends in your field should cannabis businesses watch out for in 2020? T his is the first installment of Question of the Month, a new department in which we survey a group of marijuana industry executives and ask them a pressing industry question. We welcome your suggestions for topics. Email us at . In keeping with this issue’s cover theme, we asked executives from the fields of accounting, banking, insurance, investing, and law: What trends in your field should cannabis businesses watch out for in 2020? By Omar Sacirbey Naomi Granger Co-CEO, Dope CFO, Las Vegas If you touch cannabis today, your likelihood of being audited is extreme. Expect a “tsunami” of audits in the cannabis space—not a wave, a tsunami. Collections- enforcement action by the IRS is increasing for the first time in many years. Geoff Bacino Partner, Bacino & Associates, Alexandria, Virginia From a legislative front, opposition to cannabis appears to be thawing, and the presidential race could provide an impetus for a national solution to the question of what is legal and acceptable. For the cannabis-related industry, this would be a huge improvement over the status quo. Patrick McManamon CEO, Cannasure, Cleveland The vape issue is currently top of mind for many insurers and reinsurers as they continue to monitor the rapidly expanding cannabis industry. They will be carefully watching the industry’s response and attitude toward the situation before they offer additional limit capacity. Sheri Orlowitz Founding partner, Artemis Holding Group, Washington DC Companies will fold or be picked up cheaply. Distressed investors have been sitting on the sidelines waiting for valuations to make sense, and they will enter the market. Beyond lowering valuations to reflect the new normal, successful companies will develop creative fundraising strategies to attract capital or even go outside the cannabis space. Brent Johnson CEO, Hoban Law Group, Denver Where I see huge opportunity is the technological development that’s going to happen around hemp. For example, if you want to make plastic out of hemp, there isn’t a lot of technology that does that, and it doesn’t exist on a mass scale. Even technology that makes hemp clothes softer, more durable, there are so many opportunities to invest in technology and processes.