One of the big topics to watch in the coming months and years will be how states choose to control and limit cannabis businesses. Up to this point, many of the regulations have been focused on overall legalization and the infancy of the industry as a whole, but those will soon be merely the foundation for dozens of other laws to build upon.
With Florida recently ruling that they won’t put a limit on how many medical marijuana business licenses they will hand out — overriding the previously common belief that the Sunshine State would only allow a certain amount of businesses to form — we’re already seeing how the changing regulatory and case law landscapes can affect cannabis businesses in their growth phases.
For instance, the industry giant MedMen was praised for spending a significant sum in order to secure several licenses in Florida back when they were limited. Under the judge’s new ruling, MedMen may have grossly overpaid for the major purchase that was once considered a great transaction. While that miscalculation likely won’t be enough to sink an established brand like MedMen, a smaller business making the same mistake may not have been so lucky.
That’s why I believe that being well-capitalized but not over-capitalized allows a cannabis business to stay nimble and pivot as needed all throughout its growth phase. It’s why Gladbrook Holdings isn’t rushing to go public, and why we believe we’ll be able to pay our investors back while growing to a national or global level.
Using a small business model that can be successfully and sensibly scaled, we’re able to take incremental steps for the time being while also keeping an eye on the future of public markets. As we’ve seen so many times in the tech world, being the first company in a field means nothing without making the right decisions. We’re perfectly happy to let some of the other cannabis companies go public first and make the costly mistakes — like severely overpaying for once-limited licenses — that so often come with that early pressure to develop a footprint.