New GAO Report Highlights Persistent Banking and Financing Challenges
for Cannabis Businesses

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A new report from the U.S. Government Accountability Office (GAO) highlights the continued challenges cannabis-related businesses face when accessing banking and financing services. The report found that while some financial institutions serve cannabis businesses, obtaining and maintaining financial services remains difficult and costly. Cannabis operators reported account closures, high banking fees, and elevated borrowing costs, with participants in seven of eight GAO focus groups reporting loan interest rates above 15%.

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For cannabis operators, the challenge extends beyond simply finding a bank. Limited lender participation can make it difficult to secure acquisition financing, refinance existing obligations, fund expansion, or obtain working capital on competitive terms. The GAO identified regulatory uncertainty and the additional compliance requirements associated with serving cannabis businesses as factors that continue to limit financial institutions' willingness to enter the space.

This environment makes having a thoughtful approach to financing particularly important for cannabis businesses. Charles Ryan Inc. works with cannabis operators to evaluate their capital needs, navigate the financing process, and explore potential funding solutions tailored to their individual circumstances. As the industry continues to mature and the financial landscape evolves, CRI remains focused on helping businesses understand their options and pursue capital that supports their goals [1].

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Vireo Growth Acquires Planet 13
Vireo Growth Inc. announced a definitive agreement to acquire Planet 13 Holdings Inc. in an all-stock merger [1, 2]. The transaction makes Vireo one of the largest operators in the cannabis space and sent its stock price to an all-time high. Notably, the deal was structured entirely in stock rather than cash or debt — a reminder that even at the top of the market, equity currency is often easier to access than affordable debt in this industry.

Here is a quick breakdown of what the deal brings Vireo:

● Nevada Expansion: Vireo secures Planet 13's 112,000-square-foot flagship Las Vegas superstore, its newly opened DAZED! consumption lounge, a distribution license, and 45,000 square feet of active cultivation.
● Florida Consolidation: The acquisition adds 33 dispensaries and two production facilities, positioning Vireo as the second-largest dispensary network in Florida with roughly 106 locations.
● Illinois Foothold: The deal adds a core limited-license retail dispensary located in Waukegan, Illinois.
● Pro Forma Scale: Following the finalization of all active M&A transactions, Vireo anticipates managing approximately 265 dispensaries across 15 states [ 1, 2, 3].​​​