The cannabis industry, both in the U.S. and globally, is in a bit of a transition right now. The unprecedented momentum of 2018 has investors more bullish than ever on the future of the industry, thanks in part to new legislation and major investments from established industries.
Born out of the 2012 JOBS Act, Regulation A (Reg A) was amended to provide a streamlined pathway for companies to raise up to $50 Million while benefiting from general solicitation, ‘testing the waters’ and state Blue Sky preemption. SEC reporting companies were originally excluded from using Reg
Oscar Wilde once wrote that “Everything popular is wrong.” He was describing our natural tendency to find comfort with well-established people and widespread ideas. Regulators, faced with the opportunity to open markets to alternative choices, hear a chorus of respected voices resistant to change.
Though the government shutdown threatened to stall the 2019 major IPO market before it even had a chance to get off the ground, there is one sector that is hoping to keep its IPO momentum going in 2019: community banks.