Aurora Cannabis in Edmonton, Alberta, said it recently agreed to a $150M term loan and a $50M line of credit from Bank of Montreal, the largest traditional bank investment into the marijuana industry to date.
Despite bipartisan support, the latest congressional effort to enable the legal marijuana industry's access to the banking system still faces plenty of roadblocks.
In a break with his own Justice Department, President Trump suggested Friday he would sign a bill co-authored by Sen. Elizabeth Warren to protect financial institutions that help legal marijuana businesses.
The bipartisan legislation would enable business in legal-marijuana states to access banking services, removing a key hurdle for a fast-growing industry.
With the state only months away from allowing the sale of pot for recreational use, its top cannabis regulator is urging policymakers to consider creating a public bank to provide services to growers and dispensaries that might otherwise have nowhere else to bank.
Retracting an Obama administration policy that shielded banks servicing marijuana companies threatens financial firms and makes the pot industry too reliant on cash.
Financial institutions are facing considerable uncertainty following the Department of Justice’s decision to rescind Obama-era guidance for the legal marijuana business, but there are steps they can take to reduce their risks.
Calling the move "depressing," Chairman Ken LaRoe said the decision to stop working with medical marijuana firms came after certain investors objected. Recent moves by the federal government cemented the call.
