Canopy Growth Corp (WEED)

[Bonno]

It,s only a matter of time folks...

Many marijuana enterprises are financing themselves through nonpayment of federal taxes, assert our guest columnists, James Mann and John Yaeger.

Caught in the perfect storm of collapsing margins, oppressive taxes and vanishing access to debt and equity capital, those businesses are buying time by not making estimated tax payments in hopes of a brighter future.

Some observers try to put a positive spin on nonpayment as “cheap financing,” claiming that the interest charged on federal unpaid taxes is lower than interest that would be charged on other kinds of debt.

This is folly, of course: Interest rates on underpayments when added to penalties that might apply result in costly financing, especially for large corporations that could be subject to higher underpayment interest rates (and underpayment interest isn’t deductible).

More to the point, it’s a bargain with the devil because, when the IRS begins collection procedures, the marijuana taxpayer will have no choice but to pay the amount owed sooner or later.

Nebraska petitions requirement to remain despite cannabis advocates’ suit
A circuit court in Nebraska reversed a lower court’s decision to remove a requirement that ballot initiatives receive support from 5% of voters in 38 of the state’s 93 counties.

Nebraskans for Medical Marijuana tried to get the requirement removed, arguing it violated the Equal Protection Clause of the 14th Amendment because it weakened the voting power of those in the state’s counties with the most people.

British Columbia marijuana distribution center resumes operations
The union representing workers at British Columbia’s only cannabis wholesaler paused its job action, allowing for the resumption of shipments to retailers across the province.

The BC General Employees’ Union had started the job action in August, targeting the government-owned BC Liquor Distribution Branch. That strike led to stores being unable to receive products to sell and store workers being sent home.