Cannabis industry secures much-needed funding boost

In a major boost for the fledgling medicinal cannabis industry, the Barbados Medicinal Cannabis Licensing Authority (BMCLA) has partnered with Trust Loans Fund Barbados to overcome the financial hurdles hampering the sector’s growth.

 

The move aims to provide crucial startup capital to approved licence holders who have been struggling to secure loans from traditional lending agencies.

 

BMCLA communications and public education specialist Tracy Moore told Barbados TODAY on Friday that approved licence holders were experiencing significant roadblocks in developing their businesses because lending agencies were refusing to loan them much-needed startup capital.

 

But Moore said that with the advent of the Trust Loan Fund, there would be more “movement” in the industry.

 

Last October, the Acting Chief Executive Officer of the BMCLA, Shanika Roberts-Odle announced that the new industry was already under great strain because of the lack of access to domestic and international funding, and the inability for businesses to open accounts or transfer funds.

 

This is the fourth year of operation for the BMCLA and to date, ten licensee businesses have been granted approval for about 30 licences and the University of the West Indies was granted three licences.

 

The licences approved were for all types of activity except laboratory work.

 

There are eight licence types: cultivator, which consists of four tiers ranging from $29 700 to $79 200 in fees; research and development, which is $74 250 in fees; processor, which comprises three tiers and ranges from $148 500 to $990 000 in fees; retail distribution, which is $148 500 in fees; importation and exportation, which are both $5 940 in fees; transportation for a single vehicle is $99 000 in fees and $14 850 for each additional vehicle; and laboratory is $74 250 in fees.

 

The licences are valid for five years and payment plans are available within three years.

 

More than 60 per cent of the ten approved businesses are Barbadian-owned and the majority of them are partner-based businesses.

 

“Banking is an issue because the banks here in Barbados deal with the banks in the United States (US) and because cannabis is not federally legal, there is a block there. So, the local banks are afraid to invest in the medicinal cannabis industry because of their relationship with the banks in the US,” Moore explained during an open house session at the BMCLA headquarters in Wildey, St Michael.

 

She pointed out that the issue was not just in Barbados alone but a regional problem as well.

 

As with all its other clients in different sectors, clients of the trust loan fund in the medical cannabis industry can access up to $5 000 in loans.

 

Digital banking platform mMoney is also partnering with the BMCLA.

 

Moore said: “Having mMoney come on is a way to help bridge the gap, that if I am an owner, I don’t have to deal with cash all the time and feel the pressure of security. Our security master plan is very detailed and if you always have to deal with cash there is a sense of fear. The digital dollar alleviates some of that fear. Our licensees can use the digital platform to be able to do payroll, to be able to pay service providers.”

 

She added that the partnerships with both entities have been a game changer.

 

“It is a game changer because a lot of people who have come to us and talk to us about what is making them pause was that financial bit,” the BMCLA spokeswoman said. “We are hoping that with these partners people are feeling a little bit more comfortable to move forward. It is a step in the right direction to secure your business or start your business.”

 

During the open house session, those interested in participating in the industry got the opportunity to learn more about the application process.

 

Moore said she was pleased by the turnout, adding that all the interactive sessions were fully booked for the event which ran from 10 a.m., to 3 p.m.