280E Is Gone: Here Is How Cannabis Operators Are Handling Capital Now ft. Joseph Lustberg

Joe Lustberg co-founded Upwise Capital, one of the most active cannabis lending operations in the country with access to over 115 lenders and banks deploying capital across every major cannabis market. He has reviewed thousands of cannabis P&Ls, balance sheets, and pro formas. He has also spent over two years paying rent on a Hamptons dispensary location he cannot open because the town of Southampton tried to rezone his property while he was simultaneously advising operators on exactly that kind of risk. That double perspective, lender and operator at the same time, is what makes this conversation different from every other cannabis capital markets discussion. Joe is not explaining theory. He is describing what he has seen from both sides of the table. What we cover: ● Why 280E elimination is the single biggest game changer for small operators and what lenders actually need to see before they move ● Why rescheduling will not immediately lower your cost of capital and what operators are getting wrong about the timeline ● The 1.5X burn capital rule and why skipping it is the most common reason operators run out of money at the worst moment ●How lenders valued cannabis facilities at $20 to $40 million when the real estate was worth $5 million and what happened next ● What Joe sees on a balance sheet in the first 30 seconds that tells him everything about the operator ● The executive salary red flag that shows up on almost every failing cannabis business ● How to graduate from private cannabis debt at 18% to bank financing at 7 to 9% ● The Pepsi bottling facility in Pueblo, Colorado that grew cannabis indoors at $250 a pound ● Which cannabis markets still have runway and where capital is actively moving right now ● What two years of paying rent on a dispensary you cannot open teaches you about operator risk Chapters 00:00 Navigating the Cannabis Landscape: A Personal Journey 02:51 Understanding the Financial Risks in Cannabis Operations 06:01 The Importance of Burn Capital for Cannabis Startups 09:02 Lending Dynamics in the Cannabis Industry 11:55 Market Trends and the Future of Cannabis Financing 14:51 The Impact of Rescheduling on Cannabis Operators 18:01 Identifying Strong Operators in a Competitive Market 21:05 Evaluating Financial Health: Key Indicators for Success 26:01 Evaluating Limited Markets: The Ohio Perspective 28:24 Navigating Unique Financing Requests 29:12 Surprising Success Stories in Cannabis Financing 32:04 The Importance of Experience in New Ventures 35:46 Identifying Undervalued Markets in Cannabis 38:00 The Future of Cannabis Markets and Interstate Commerce Guest Links https://www.linkedin.com/in/joseph-lustberg-23076722 Our Links: Bryan Fields on Twitter Kellan Finney on Twitter The Dime on Twitter Extraction Teams: Want to cut costs and get more out of every run? Unlock hidden revenue by extracting more from the same input—with Newton Insights. At Eighth Revolution (8th Rev), we provide services from capital to cannabinoid and everything in between in the cannabinoid industry. The Dime is a top 5% most shared global podcast The Dime is a top 10 Cannabis Podcast The Dime has a New Website. Shhhh its not finished. 🎥 YouTube: The Dime 📸 Instagram: The Dime https://www.newton-insights.com/