Common Cap Table Issues for Cannabis Businesses
Common Cap Table Issues for Cannabis Businesses
When starting your cannabis business, you need to allocate equity to founders, investors, and other critical stakeholders. Most people are inexperienced with this and make huge mistakes that essentially limit the potential growth of the company.
Another scenario includes a company doing very well financially and deciding to go public which leads to the founders and employees being on the hook for unnecessary taxes for cashing out their stock.
In this video, we cover:
– Vesting Schedules – Immediate Vesting (0:51)
– Not Using Equity Tracking Software (2:14)
– Handshake Deals Gone Wrong (2:47)
– Incomplete Recordkeeping with Spreadsheets (3:59)
– Incentive Stock Options Exercised Too Late (Scenario Analysis) (5:29)
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