Cannabis businesses in distress have options in addition to receivership: Set risk mitigation goals and objectives with creditors to achieve debt resolution.
Cannabis Business Times recently called upon United CMC’s Founder, President and Executive Director of Corporate Monitoring & Consulting Services for his insight into the options for relief that creditors have when cannabis businesses become distressed.
When Bankruptcy is Not an Option: Alternatives For Cannabis Companies
Receivership can accomplish everything that a workout can, but is also the most expensive option, according to UnitedCMC, which acts as a receiver for distressed businesses. Typically, the court appoints a receiver at the request of the creditors.
“Receivership is an old, tested and proven legal tool to marshal, protect and preserve assets,” according to UnitedCMC President Dotan Y. Melech. “In today’s environment, this can include revocable privileged cannabis licenses as well as cannabis products.”
A cannabis receivership relaxes the pressure on distressed cannabis businesses and can only be conducted by order from the court.
A solid regulatory framework for cannabis receivership is essential for regulated state cannabis markets
A robust regulatory process for cannabis receiverships will benefit everyone involved in the U.S. cannabis industry, and Nevada cannabis regulations are a model program.
Get cannabis businesses back on track by putting the right models in place. A cannabis receivership will have the best chance to save a distressed business if the right financial and operational models are put in place.
To get the best outcome in a cannabis receivership, here’s how to structure the process and plan for worst-case scenarios.
A cannabis receivership works most efficiently when cannabis creditors know what to expect up front and needed compliance info and documents are quickly gathered.
Learn more about the cannabis receivership process: A receiver’s focus on cannabis business accountability and transparency benefits all involved parties.
As states continue to give the green light to medical cannabis programs and / or adult-use recreational sales, entrepreneurs are jumping at the chance to get their piece of the proverbial pie.
When a cannabis business faces bankruptcy, take steps to protect business assets and recover investments. Here’s a look at how cannabis receivership works.
Come join Dotan Y. Melech, President of UnitedCMC, for a three part webinar series discussing the Power of Receiverships in the Cannabis Industry.