Recent calculations by Viridian Capital Advisors have shed light on the significant impact that eliminating Section 280e could have on the cannabis industry. This impact could potentially outweigh the effects of the SAFE Act and a TSX uplisting. Section 280e, a provision in the Internal Revenue Code, restricts businesses from deducting ordinary expenses associated with the “trafficking” of Schedule I or II substances, as defined by the Controlled Substances Act.
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