Category: Banking and Restructuring

The Cannabis Industry’s $6 Billion Debt Wall

Post author By Blank Rome LLP
Post date October 1, 2025

A debt avalanche is bearing down on the U.S. cannabis market to the tune of roughly six billion dollars coming due by the end of 2026, with the top five borrowers—each a multi-state operator (“MSO”)—accounting for about $3.4 billion. The sector’s reliance on costly debt, born of limited access to traditional capital, has set the stage for a potentially messy, uneven reckoning.

Why this matters now

Scale and timing: The maturities bunch up into 2026, compressing the refinancing window and elevating risk across the ecosystem.
Cash flow stress: Many capital structures are expensive, and several operators still burn cash, curbing their ability to refinance on favorable terms.
Market significance: Despite headwinds, cannabis generated $32 billion in 2024 revenue, employed 400,000+ people, and contributed $4.4 billion in state taxes—meaning outcomes here have real economic spillovers.

Tags debt

Turning Over a New Leaf: How Cannabis Receiverships Can Cultivate a Stronger Future

Post author By Blank Rome LLP
Post date September 10, 2025

Lauren Medeiros Forster —

It is no secret that the cannabis industry has been on a wild ride lately, especially in mature markets. Many operators are feeling the pressure, and they are not alone. Let us break down the current landscape, why it is tough out there, and how receiverships and distressed sales might actually be a positive move for struggling cannabis companies.

Many developed cannabis markets are facing serious challenges. Inflation and a shaky economy are making it harder for businesses to stay afloat (regardless of industry type), on top of market saturation that has caused cannabis prices to drop, and tight profit margins for businesses in the more established marijuana states. This is compounded with the harsh effects of tax burdens due to 280E—where cannabis companies are unable to deduct otherwise established business expenses from gross income as a result of the federal illegality of cannabis in the United States—and lack of liquidity from inability to access traditional debt financing and institutional equity markets. As a result, many cannabis companies are finding it difficult to pay their debts and keep the lights on. And because cannabis is still federally illegal in the United States, struggling cannabis operators are limited when it comes to utilizing federal bankruptcy mechanisms for relief.

But hope is not lost. Even in tough times, cannabis businesses along with their management, creditors, and investors, have found options to help their companies restructure and move forward. One of those is a state-level receivership.

Tags distressed sale, receivership

Banking and Restructuring Mergers and Acquisitions Regulatory Compliance

November 2024 Transaction Highlights: A Month of Newsworthy Successes

Post author By Blank Rome LLP
Post date December 4, 2024

Marc A. Polito —

Our Cannabis Industry Group would like to thank our clients—major cannabis market leaders—for yet another successful month, trusting us to close several notable and newsworthy deals across various practice areas and industries in November 2024. Our team of dedicated attorneys provided strategic counsel on complex transactions, including banking and finance, mergers and acquisitions, workouts and receiverships, and public securities, showcasing our commitment to delivering exceptional results for our clients. These achievements underscore the strong partnerships we have with our clients, as well as our firm’s extensive experience and collaborative approach to navigating intricate legal and business landscapes while servicing major market leaders in the cannabis industry.

Tags financing, transactions