Manage episode 237753152 series 1694076
This week, we present a special episode produced on behalf of CohnReznick.
There’s a bonanza sweeping across North America: cannabis.
As more states legalize marijuana, the industry is attracting high-profile investors and bringing in $6.5 billion in yearly sales.
But it also faces two major challenges: limited access to banking and high energy costs.
Because cannabis is still illegal at the federal level, traditional banks are unwilling to do business with the thousands of companies serving the market.
At the same time, the industry now eats up $6 billion in electricity costs. Growers are paying tens of thousands of dollars per month to power cultivation sites, and some utilities are worried about strain on the grid in certain locations.
Trying to slash that electricity use is very hard for cash-only companies that can’t get access to traditional financing.
“The capital you would most typically have to deploy if you wanted to site solar at a cultivation facility will end up being very expensive because you don’t have access to traditional bank financing,” explains Mark Hooley, a managing partner at CohnReznick.
In this episode, we talk with Mark about the intersection of cannabis and renewable energy. What will it take to green up America’s newest cash crop?
Learn more about CohnReznick’s cannabis practice.
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