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0.00124466571834993 0.00124466571834993 0.0023115220483642 0.00435633001422471 0.006045519203414 0.0037339971550498 0.00568990042674254 0.00613442389758177
Stock impact report

The Reputable 13.7%-Paying REIT With ‘Prohibition Pricing Power' [Forbes]

Innovative Industrial Properties, Inc. (IIPR) 
Company Research Source: Forbes
Cannabis is different. It is tricky for operators to find money due to federal roadblocks. At the national level, cannabis is still illegal . However, 40 states have legalized the drug in some fashion. Uncle Sam mostly looks the other way and lets states regulate their own markets—except when it comes to banking and taxes. Banks cannot lend to cannabis operators. So, good luck financing that building. Also, there is a tax code relic of the 1980s war on drugs (“Just Say No!”) called IRC Section 280E. It blocks cannabis operators from deducting ordinary business expenses. Which means their profits are artificially low and access to credit is denied due to poor-looking books and federal laws. But if you live in a state where cannabis has been legalized, you know there is plenty of money flowing. Obviously, there is no shortage of demand to fund the countless dispensaries that have popped up in recent years. Where do these weed businesses find the money? The 13.7% Yielding REIT Show less Read more
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