Permitted Economic Interest for Cannabis Businesses

 
 

A Permitted Economic Interest (PEI) is a future contingent equity interest approved by the state regulatory agency. We see these PEIs approved in a variety of fashions including option agreements, warrants, or most commonly, a convertible promissory note. The concept is that if a lender provides a business money, instead of recovering the debt owed on that loan, the lender can convert the debt that the company owes into equity in the company. This requires a comprehensive application and financial audit from the state regulatory agency. Wherever you are in your licensing, pre-suitability or PEI processes, come talk to McAllister Garfield. We’ve gotten hundreds of businesses licensed and we’ve worked on thousands of applications. We know the regulators and we can help you get your applications in without a hitch.