What Investors Need To Know About 2024 Cannabis Risks In Under 3 Minutes

Harris Sliwoski, an international law firm experienced in cannabis law, outlines four major risks facing the cannabis industry in 2024, each presenting unique challenges for businesses and investors.

Illegal Market Growth

The persistence and growth of the illegal cannabis market continue to overshadow legal operations. According to the report, an alternative solution could be integrating illegal operators into the legal market, which lacks momentum. This growth intensifies competition for legitimate businesses that adhere to regulations and pay taxes, per the report. 

Intoxicating Hemp Products

The surge in intoxicating hemp products post-2018 Farm Bill introduces competition and legal ambiguities.

Uncertain Federal Law Changes

The unpredictability of federal cannabis rescheduling creates an unstable environment for business planning. In the report, the law firm explains predictions about federal cannabis rescheduling are rife with uncertainty. The potential rescheduling of cannabis to Schedule III of the CSA is not guaranteed, nor is its impact on the industry clear, leaving businesses and investors in a precarious position. 

Investor Vulnerability

The sector is expected to witness heightened levels of fraud and mismanagement, putting inexperienced investors at significant risk. Misleading promises about federal legalization and tax benefits are likely to result in substantial financial losses for those who fail to conduct thorough due diligence. 

The law firm warned about prevalent optimism in the marijuana industry and varying oversight levels might increase the risk of investors encountering over-optimistic or speculative business proposals. 

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