Access to capital is critical for any industry. The state-legal cannabis industry struggles in this area for several reasons, including federal illegality, stigma issues that reduce the investor base, the capital intensity of many of its businesses (like cultivation facilities), the lack of financial intermediaries due to limited banking availability and a litany of rules at the local and state levels that can change very quickly and create risk for owners.
Many companies directly in or serving the cannabis industry have turned to the public markets in order to facilitate raising capital.