MBO Ventures, an investment bank specializing in employee stock ownership plans (ESOPs) within the cannabis industry, recently achieved another milestone by completing an ESOP for Canna Provisions, an award-winning, woman-led cannabis dispensary and cultivation based in Massachusetts.
The deal marks a pivotal moment in the evolution of ESOP structures for cannabis businesses, particularly in navigating the complex landscape of tax regulations such as 280E while embracing and empowering employee ownership in the cannabis industry.
"Providing an opportunity for our team to benefit from the value we are all building in Canna Provisions has been our top priority," says Meg Sanders, CEO and co-owner of Canna Provisions. "This transition, and now our 'ownership,' will extend to a diverse spectrum of the community across social equity, veterans, and women in cannabis."
Canna Provisions operates two retail outlets in Lee and Holyoke, Massachusetts. Sanders and Canna COO Erik Williams opened the company's flagship cannabis dispensary in Massachusetts in 2019. The dispensary is located about 10 minutes from the New York State border.
Canna Provisions produces products under the Smash Hits brand, known for craft cannabis cultivated by renowned legacy grower and Smash Hits Director of Cultivation Greg "Chemdog" Krzanowski. The brand's strains include Chem 91 and the original Chem D.
According to Darren Gleeman, managing partner of MBO Ventures, Canna Provisions has positioned itself for sustainable growth and long-term success by alleviating the negative impact of 280E, freeing up cash flow and empowering its employees.
Podcast: Darren Gleeman: Employee Ownership a Lucrative Solution for Overtaxed Cannabis Operators
With a background in finance, Gleeman has been pivotal in developing ESOP methodologies tailored to the cannabis industry's unique needs.
Last year, CEO Meg Sanders and COO Erik Williams received the Lee Chamber of Commerce Corporate Citizen of the Year 2023 Award for Canna Provisions.Canna Provisions
