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The announcement by Fluresh, a Michigan-based vertically integrated cannabis company, of the closing of federally insured commercial bank loans totaling nearly $50 million represents a significant milestone for Fluresh and the cannabis industry. at large. For Fluresh, perhaps as important as the financial benefits of lower cost financing, having its operations and finances accepted by a major commercial bank can be seen as a significant rite of passage. For the industry, this reflects its inexorable movement out of the shadows and into the mainstream. This confirms the view that whether or not any of the pending federal laws are enacted, bank lending to the cannabis industry will continue to accelerate.
While a number of mega-banks are stubborn holdouts, and whether or not there is a formal change in banking laws or regulations, this transaction is further evidence supporting the belief that more and more major banks are entering and will continue to enter the market. Everyone who does both leads the way and attracts others.
Of equal if not greater importance to the industry than the direct impact on increased access and cheaper money on operating results, are the intangible, “outside the shadows” implications of these trends in the ongoing process of propelling her “into the mainstream”. “, whose potential importance probably extends far beyond banking.
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