Taking a marijuana company public is often viewed as a great exit strategy, usually by entrepreneurs who are dreaming of a big payout.
It can also be a quick route to disaster, however, especially in situations involving a reverse merger – the most common method of going public in the marijuana space.
Aside from increased scrutiny, regulations, reporting requirements and costs, entrepreneurs who spent blood, sweat and tears building up their companies can lose control of the business literally overnight. In a worse-case scenario, founders can even be forced out of the company completely.
Read John Schroyer’s “Going Public Comes With Unexpected Potholes, Pitfalls for Cannabis Entrepreneurs”: http://mjbizdaily.com/publicly-traded-cannabis-firms-encountering-unexpected-potholes-pitfalls/
