The Newsletter’s Aim

Weeding the News – a breakdown of cannabis news, important events, and top-notch accounting tips – aims to entertain and inform you as we watch the cannabis industry transform before us.

The information contained in Weeding the News issues is provided for informational purposes only and should not be construed as tax or legal advice.

© 2025 BTA Corp. All rights reserved. AI-generated.

What’s on the Docket

In the Northeast, two different cannabis entities dropped the ball in a major way. In New York, the Office of Cannabis Management approved locations for dispensaries, only to find out they weren’t zoned correctly. In Massachusetts, a medical equipment manufacturer faces a billion-dollar lawsuit, with plaintiffs alleging the company knowingly sold them faulty equipment. Veterans may get better access to medical cannabis, and Pennsylvania citizens could soon be reimbursed for the cost of their medical marijuana. We hear from a cannabis podcaster about veterans and cannabis, highlight some lucrative cannabis jobs, and offer more tax tips.

Cannabis in Los Angeles and Beyond

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An L.A. dispensary owner had over $10,000 seized from his dispensary in back taxes, just hours after speaking with LAist, a local media outlet, about the pressures of paying taxes. Read more on the LAist.

Over two dozen cannabis testing laboratories are seeking a collective $1 billion in damages from a medical equipment manufacturer, alleging the manufacturer sold them faulty equipment under false promises. Read more on MJBizDaily.

A new Pennsylvania bill would require employers to reimburse employees for the cost of medical marijuana under workers’ comp. Read more on Marijuana Moment.

© 2025 BTA Corp. All rights reserved. AI-generated.

Despite a rocky start, cannabis stocks enjoyed a respectable 6% increase in July. Read more on New Cannabis Ventures.

Thanks to a House and Senate-approved provision, VA doctors could soon be able to recommend medical marijuana to patients across the U.S., potentially affecting nearly 13 million veterans. Read more on The Marijuana Herald.

As Texas is looking to ban hemp, lumping it in with cannabis in an overall THC ban, its more rural citizens are expressing their fear that such a move would wreak havoc on the economy and take away a crucial (and cheaper) medical alternative. Read more on Marijuana Moment.

© 2025 BTA Corp. All rights reserved. AI-generated.

Cannabis use does not necessarily lead to cardiovascular issues, according to a new study. An important finding, as cannabis use has often been said to be harmful to the heart. Read more on Medical Xpress.

Delaware citizens (and visitors) have cause to rejoice, as the state has now officially started selling recreational cannabis. Read more on the Marijuana Herald.

Nearly 100 (legal) New York cannabis dispensaries might be forced to move after the Office of Cannabis Management (OCM) incorrectly approved store locations over two years. Read more on the Business of Cannabis.

© 2025 BTA Corp. All rights reserved. AI-generated.

Abroad

The U.K. medical cannabis market could be worth as much as £500 million (equivalent to over $600 million) by 2029, according to new research. Read more on Leafie.

“Cookies,” an international cannabis lifestyle brand, opened its first location in Jamaica on August 5th. Read more on Cannabis Business Times.

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Tax Strategies

ESOPs for the Cannabis Industry: What They Are, How They Work, How They Function as a Tax Shelter

Cannabis companies are increasingly leveraging Employee Stock Ownership Plans (ESOPs) to navigate the financial constraints imposed by Section 280E of the Internal Revenue Code. This provision prohibits businesses involved with Schedule I or II substances, including cannabis, from deducting ordinary business expenses, leading to significantly higher effective tax rates.

ESOPs offer a strategic alternative by allowing company owners to sell their shares to a trust established for employees, thereby deferring capital gains taxes. Additionally, this allows for more flexible exit strategies for investors. The trust holds the stock for the benefit of the employees, and the company can use tax savings to repay any debt incurred during the transaction. This structure effectively transforms the company into an employee-owned entity, which, under certain conditions, may be exempt from federal income taxes, thus mitigating the impact of 280E.

Massachusetts-based companies like Theory Wellness and The Vault have implemented ESOPs since 2023, setting precedents in the industry. In Maryland, recent legislative changes have further facilitated this approach by exempting ESOPs from the state’s five-year license-hold requirement for cannabis businesses, providing an exit strategy for founders and a tax-efficient structure for the company.

Beyond tax advantages, ESOPs can enhance employee engagement and retention by aligning employees’ financial interests with the company’s success. However, implementing an ESOP requires careful consideration of the company’s size, profitability, and long-term goals. According to Menke’s “Profile of an ESOP Candidate,” a company should generally meet the following minimum thresholds before sponsoring an ESOP, pretax income of approximately $200,000, and an employee headcount of at least 7 for a C-corporation (or 12 for an S-corporation).

While ESOPs are not a universal solution, they represent a viable option for cannabis companies seeking to reduce tax liabilities and foster a committed workforce in a challenging regulatory environment.

© 2025 BTA Corp. All rights reserved. AI-generated.

Upcoming Events

Representatives from Cannabis CPA Tax will be attending these events.
Say hi… we’d love to chat.

Nationwide Tax Forum

San Diego, CA., Sep. 16 – Sep. 18
While not specifically about cannabis, this is a great event if you are in the tax business and are looking at attracting more customers, bolstering your productivity, and achieving a better work-life balance.

MjBizCon 2025

Las Vegas, Nevada, Dec. 2-5
MJBizCon is the largest global B2B cannabis conference and trade show, offering four days of expert-led education, cutting-edge exhibits, and unparalleled networking. Tom Andersen will be moderating a panel discussion at this event.

Events Abroad

If your travels take you abroad, we recommend attending these events.

© 2025 BTA Corp. All rights reserved. AI-generated.

The Situation Report

News – U.S.

Two L.A. men are being charged with murder after five people died at their illicit cannabis extraction business. The deaths occurred in two separate incidents. Read more in the Los Angeles Times.

Representatives for Glass House, which was subject to a now-infamous raid, have released a statement regarding the raid. Read more on Fox 11 Los Angeles.

Abroad

In Salford, U.K., nine people have been arrested in connection with a raid targeting “fast parcel” smuggling. The operation involved shipping cannabis internationally to the U.K. Read more on the BBC.

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Industry Insight: Ryan Johnson, 420 Chief Podcast

Veterans and Cannabis

Image provided by Ryan Johnson.

“Through my work on the 420 Chief podcast, I’ve learned that 68% of all veterans are prescribed SSRI medications by the VA. Research clearly shows that SSRIs can actually increase the risk of suicide — and yet we already have a global veteran suicide crisis devastating communities across the world.

“Cannabis has proven to be a safer and more effective alternative for many veterans. It’s not just about symptom management — it’s about giving people a real chance to heal. Veterans deserve access to plant-based options that support their mental and physical well-being without the heavy risks tied to pharmaceuticals.

“The time is now to prioritize research, destigmatize healing through cannabis, and offer veterans real choices when it comes to their survival and their quality of life.”

Ryan Johnson (420 Chief) is a retired Navy Chief with 20 years’ service who overcame chronic pain, anxiety, and addiction through cannabis. He hosts the 420 Chief Podcast, founded the nonprofit Break Stigmas, authored Strains for Pains, leads TikTok music-therapy sessions, and advocates nationwide for veterans’ cannabis access. You can also find him on YouTube.

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© 2025 BTA Corp. All rights reserved. AI-generated.

Jobs

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Job Title: Retention Marketing Manager
Location: Los Angeles, CA
Salary: $70,000 to $100,000 per year

Mammoth Distribution is a manufacturer of safe, high-quality cannabis products; they distribute their own brand portfolio and partner brands across the country.

Requirements:

• 6+ years in retention or lifecycle marketing—DTC experience is preferred
• 2+ years working with Shopify (preferably recent experience or familiarity with platform changes/updates over time).
• Deep knowledge of Klaviyo as well as experience with loyalty/referral software, subscription software, and common retention marketing tools.

Ideal candidates will have excellent project-management skills and a passion for plant-based wellness and familiarity with regulated or age-gated categories (CBD, supplements, alcohol, etc.).

Benefits: Competitive salary + performance bonus, health insurance, generous PTO, and a monthly free product allowance

Check out their reviews on Glassdoor.

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Job Title: Senior Machine Learning Engineer Tech Lead
Location: Austin, TX
Salary: $218,368.00 – $234,366.00 per year

Weedmaps is a tech company serving the cannabis industry.

Requirements:

• Bachelor’s degree in Computer Science, Data Science, or related quantitative field
• 6+ Years of relevant experience in Machine Learning, Data Science, Data/Software Engineering
• 4+ years of experience building and deploying ML/AI models in production environments
• 2+ years of experience leading technical teams in a Tech Lead capacity, preferably in ML/AI applications
• Expert Python skills and experience with modern LLM endpoints

Ideal candidates will have experience using AI endpoints such as Claude or ChatGPT for embeddings and more advanced AI pipeline use cases such as hybrid ranking systems leveraging RAG with AI-based re-rankers that optimize specific metrics (e.g., precision). Successfully built and deployed ML systems that solved real business problems in e-commerce or marketplace environments, and successfully deployed ML systems in e-commerce or marketplace business environments, as well as regulated industry experience.

Benefits: Physical Health Benefits: Medical, Dental & Vision. Mental health benefits, Basic Life & AD&D—employer paid 1x salary up to $250,000, 401(k) Retirement Plan (with employer match contribution), generous PTO, paid sick leave, company holidays, supplemental voluntary benefits, and paid parental leave.

Check out their reviews on Glassdoor.

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Job Title: Employee Relations Manager
Location: New York, NY
Salary: N/A

HSCP Service Company LLC is a subsidiary of Canopy USA, LLC, a leading vertically integrated, multi-state operator in the United States cannabis industry

Requirements:

• Must be 21 years of age or older
• Bachelor’s Degree in relevant field or extensive HR experience
• 7+ years of experience in Employee Relations, HRBP, or related field
• 3+ years of experience in Labor Relations and employee training

Ideal candidates will have a strong understanding of labor and employment law and employee relations, exceptional communication and interpersonal skills, an ability to create effective programs, data analysis skills, and the ability to conduct impartial investigations and make fair decisions, as well as conflict resolution and mediation skills.

Benefits:

Full suite of medical, dental, and vision insurance, paid parental leave, 401 (k), paid Time Off, short-term and long-term disability, Employee Assistance Program,    Employee life insurance and supplemental life, Spouse and child life and AD&D, pet insurance. FSA and HSA are available.

Check out their reviews on Glassdoor.

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© 2025 BTA Corp. All rights reserved. AI-generated.