America's Cannabis Industry Approaches Its Next Turn: An Insider's Bold Prediction

With a career spanning over three decades, Seth Yakatan, co-founder and partner at Katan Associates International and a LinkedIn creator, stands as a powerhouse in corporate finance. His strategic mind in guiding companies through the intricate cannabis industry not only showcases his exceptional skill but also marks him as a major player in navigating this ever-changing market.

Cannabis Market’s 3 Main Obstacles: Reflecting on his career, Yakatan tells Benzinga: “I have been on my own now for about 45 years. I was on the institutional buy side for nearly 10 years before that. So I’m doing it for a long time.”

His journey through various leadership roles, including positions at Invion Ltd., iSatori, Inc. and Claritas Pharmaceuticals, Inc., showcases his skills and contributions to the industry.

Known for his unapologetic honesty, Yakatan asserts, “There’s one thing about me; I am brutally f—ing honest about the industry.”

Yakatan’s foray into the cannabis market is marked by a deep understanding of its unique challenges. Discussing the intricacies of cannabis investment, he notes, “cannabis is just constrained from a capital perspective, and it’s constrained functionally now for three reasons.”

He names federal illegality, unprofitable investments and underperforming companies as crucial obstacles.

When asked about prospects and regulatory changes, he expressed a lack of confidence in the political realm affecting the cannabis market.

“I have zero faith in the American political process at this point,” he said. His outlook shapes his advice to companies, urging them to operate within the market’s constraints while being prepared for any eventual changes.

Yakatan On California Cannabis: Focusing on California, Yakatan’s insights delve deeper into the state’s regulatory landscape and its impact on the cannabis industry. He predicts continued complexity in regulation yet also notes potential optimism if federal rescheduling occurs, which could significantly boost the industry.

In a discussion at last year’s Benzinga Cannabis Conference, Yakatan echoed similar sentiments about the California cannabis market, emphasizing the state’s stringent regulatory and taxing environment. He pointed out the hurdles businesses face due to the taxation structure and regulatory complexities, highlighting how these factors make it highly challenging to profit in this market.

Looking ahead, Yakatan is slated to speak at the Benzinga Cannabis Market Spotlight: California in Culver City on Thursday, Feb. 22 at BioScience LA. The event is more than just a conference; it’s a convergence of industry leaders and influencers, where attendees can expect to gain a comprehensive understanding of the cannabis investment landscape, policy implications in California and emerging trends. 

To learn more about this event and to register, please visit cannabismarketspotlight.com.

Seth Yakatan. Courtesy photo.