As the cannabis industry experience explosive growth and the investor base morphs from retail to institutional, scrutiny becomes global and information transfer instant. This will intensify the pressure on cannabis companies to have proper governance infrastructure in place.
Institutional investors demand proper governance and at times take action to bring such demands to fruition. By being transparent, independent, diverse, and responsive, Boards will be better equipped to ward off cynics and activist investors.
The winners in the cannabis industry will be those with systems and processes in place that garner the support and confidence of both retail and institutional investors.
Shelley Albert, Director, AG Governance Consultants