Government Shutdown Leaves Budding Cannabis Producers in Limbo
*By Tracey Cheek*
The cannabis industry enjoyed a productive 2018, but the government shutdown may be turning the industry's green light to yellow.
Cannabis stocks are up overall, but according to Debra Borchardt, co-founder and CEO of Green Market Report, the government shutdown has left some farmers and companies in limbo.
“When you think about the shutdown obviously there are people in very important jobs like the TSA and the Secret Service, so you would think cannabis is not so important, but we also have a lot of people that are depending on things that are now stalled because of this,” Borchardt told Cheddar Monday.
In December, the federal government legalized recreational hemp with the passage of the 2018 farm bill. But those farmers eager to start growing are now unable to proceed with their plans.
“The farmers that want to capitalize on this are stuck waiting for the Department of Agriculture to approve them for their applications to start growing hemp,” Borchardt said. “For them, they're in this limbo land waiting to get started.”
In that limbo land, Borchardt said, background checks and approval can't be secured or processed.
“Right now all they can do is file an application ー but there’s no one to process it.”
Beyond the shutdown's impact on growers, the shutdown has potentially stymied a number of cannabis companies' plans to go public.
“If you're a cannabis company and you're ready to go public and now all of a sudden you've been stalled, well that's affecting everything you’ve been trying to do. Your expansion plans and maybe even the companies that are waiting for you to expand," Borchardt said.
For full interview [click here](https://cheddar.com/videos/how-the-government-shutdown-can-hit-the-cannabis-industry).
Orangetheory Fitness is redefining the future of workouts with smarter tech, strength-based programming, and community-driven studios built for what’s next.
Spain's government has fined Airbnb 64 million euros or $75 million for advertising unlicensed tourist rentals. The consumer rights ministry announced the fine on Monday. The ministry stated that many listings lacked proper license numbers or included incorrect information. The move is part of Spain's ongoing efforts to regulate short-term rental companies amid a housing affordability crisis especially in popular urban areas. The ministry ordered Airbnb in May to remove around 65,000 listings for similar violations. The government's consumer rights minister emphasized the impact on families struggling with housing. Airbnb said it plans to challenge the fine in court.
Roomba maker iRobot has filed for Chapter 11 bankruptcy protection, but says that it doesn’t expect any disruptions to devices as the more than 30-year-old company is taken private under a restructuring process. iRobot said that it is being acquired by Picea through a court-supervised process. Picea is the company's primary contract manufacturer. The Bedford, Massachusetts-based anticipates completing the prepackaged chapter 11 process by February.
Serbia’s prosecutor for organized crime has charged a government minister and three others with abuse of position and falsifying of documents related to a luxury real estate project linked to U.S. President Donald Trump’s son-in-law Jared Kushner. The charges came on Monday. The investigation centers on a controversy over a a bombed-out military complex in central Belgrade that was a protected cultural heritage zone but that is facing redevelopment as a luxury compound by a company linked to Kushner. The $500 million proposal to build a high-rise hotel, offices and shops at the site has met fierce opposition from experts at home and abroad. Selakovic and others allegedly illegally lifted the protection status for the site by falsifying documentation.
Wealthfront’s CFO Alan Iberman talks the $2.05B IPO and the major moment for robo banking as the company bets on AI, automation, and “self-driving money."
