Blum Holdings Inc (BLMH)

[BriarPatch]

insane in the membrain

claims that "Banking" is not an issue are laughably absurd...

"...But, dispensaries are still struggling with one simple part of operating a businesses: opening a bank account.

That's forcing some pot shops to operate in all-cash, while others with bank accounts are still paying thousands of dollars in bills in cash.

"My taxes... I paid those in cash," said Mike Alvarez, vice president of retail sales for Terra Tech Corp., a publicly traded company that operates Blum dispensary in Reno.

Alvarez says the banks are hesitant to work with cannabis-related businesses because marijuana is still federally illegal.

"I really wish the federal government would declassify cannabis," said Alvarez.

He adds that if it was removed as a Schedule I drug that would open the door for banks to be more willing to work with them.

Alvarez says Wells Fargo, Bank of America and Chase Bank have all closed accounts on them. They say they do have a bank account right now, but can't use it for all of their expenses, so they end up paying cash for some bills. They also paid their taxes and licenses in all cash.

"Thousand of dollars that we have to go pay. So it is concerning when you're taking that much cash out and walking out to your car, or driving down and actually going to pay it and taking it in a building," said Alvarez..."

http://mynews4.com/news/local/nevada-marijuana-dispensaries-still-struggling-to-have-bank-accounts


"...his application was rejected. On June 13, he received a denial letter from his insurer of choice, Mutual of Omaha, with the following terse explanation:

"We have discontinued the processing of your application for insurance due to company policy. We cannot accept premium[sic] from individuals or entities who are associated with the marijuana industry. We are regulated by agencies of the."..."

https://www.thestranger.com/slog/2016/06/28/24267651/cannabis-exec-denied-life-insurance-forbeing-a-cannabis-exec


** Industry wide problem

"...rents office space in Anchorage and was informed by its landlord late last year that Wells Fargo – which holds a loan on the building – was preparing to call the loan because it had learned that "they" were a marijuana business..."

https://mjbizdaily.com/steep-hill-close-alaska-cannabis-testing-lab/


** Banking issue is still front and center...

"...Taxation and banking are still really holding back growth at a national level and even within some of the states..."

"...I would love to see that the business owner has access to banking and banking services,” he says. “It just seems to be so unfair and so hypocritical that the government will take tax revenues, whether it’s in cash, or whatever form, but they won’t allow the legal marijuana business owner that’s abiding by all the laws to be able to deposit money into a bank, as well as pay electronically like every other business does..."

https://www.thecannabist.co/2017/01/20/marijuana-industry-trends-2017/69538/


"...after virtually no bank would accept legalized marijuana sales deposits. Due to difficulty in obtaining financial services and because marijuana is a “cash only” business, marijuana related businesses (MRBs) face staggering safety, security and operational issues.

As a result, licensed and regulatory compliant MRBs are sitting on mountains of cash, while, in light of unclear legal exposure, immeasurable risk management, and nearly impossible regulatory compliance, hungry banks view accepting cannabis cash as insufficiently lucrative to pursue..."

https://www.cannabisbusinessexecutive.com/2018/02/cannabis-banking-issues-cash-no-flash/



"...brought in millions of dollars last year, but he’s had a hard time finding a bank to take the money. He’s cycled through 14 checking accounts in six years. Recently, he said, a bank shut down all his personal accounts, including college savings for his 3-year-old son..."

http://www.pewtrusts.org/en/research-and-analysis/blogs/stateline/2016/03/22/why-marijuana-businesses-still-cant-get-bank-accounts


"...The lack of reliable banking services has always been a problem for the cannabis industry. We’ve seen the dearth of banking options pose problems..."

https://www.cannalawblog.com/california-cannabis-banking-an-update/


business is blüming!!!