NewLake Capital Partners issues statement on cannabis being rescheduled

NewLake Capital Partners issued a statement from NewLake Capital Partners CEO and President Anthony Coniglio on the Drug Enforcement Administration, DEA, rescheduling cannabis from Schedule I to Schedule III under the Controlled Substances Act, CSA. “Today marks a pivotal moment in the cannabis industry’s journey. The decision to move cannabis from Schedule I to Schedule III under the Controlled Substance Act represents a monumental acknowledgment by federal agencies. It confirms what patients, consumers and advocates have long known: cannabis offers a safe and effective therapeutic option for millions of Americans.This rescheduling carries meaningful implications for the entire cannabis landscape. First, it will alleviate the burdens imposed by 280E tax regulations, enhancing the credit quality of cannabis operators, including those in NewLake’s portfolio. We estimate our tenants would collectively enjoy more than $400 million of annual tax savings and related increase to cash flows for their businesses. Furthermore, this important step by the federal government should provide a catalyst for incremental investment into the sector, which we believe would allow operators to recapitalize their balance sheets resulting in further improvement of the industry’s credit quality, including our tenant base.”