An underdog story of a small firm that saw a huge opportunity in the cannabis industry
Los Angeles (November 28, 2018) – Adnant LLC, an accounting and consulting firm specializing in roll-up strategies and taking companies public via reverse takeovers (RTO), jumped at the opportunity to work with the cannabis industry in 2009 and is now the industry’s trusted expert. The firm has helped prominent cannabis companies go public, including cannabis leader MedMen Enterprises Inc. (CSE: MMEN) (OTCQB: MMNFF)
Since 1996, when California became the first state to legalize medicinal marijuana, the cannabis industry has been moving forward. Despite heavy regulation, it has proven its resilience, growing and flourishing nationwide. However, it wasn’t until recently that professional service firms decided to jump on board the cannabis train.
Sabas Carrillo, Adnant’s Managing Partner, said, “A few years ago, finding auditors that were willing to work with the cannabis industry was a challenge. At one point, we interviewed 48 auditors and only two accepted our offer. We decided to partner with Macias, Gini & O’Connell. As of today, MGO has completed more industry audits than any other firm.”
Most of the industry’s challenges are by-products of its cash-based operations, legal constraints, and the stringent regulatory environment it operates in. These difficulties have deterred many audit and accounting firms from accepting cannabis companies as clients.
Carrillo explained how his firm overcame industry-specific roadblocks, “Restrictions forced us to innovate, we had to borrow guidelines from other cash-based industries such as gaming and casinos. We also developed audit-ready cash handling procedures that are now widely used within the industry.”
Today, Adnant’s speed of execution and industry knowledge is unmatched. The firm’s ability to execute quickly was evident in MedMen’s speedy public listing this past May. Adnant completed pre-RTO work for MedMen and its more than 50 subsidiary companies in less than five months, an impressive time for any industry.
The year 2018 has been monumental for the industry, with notable cannabis companies going public on the Canadian Securities Exchange and the New York Stock Exchange. Adnant has worked closely with many of those companies, which were initially perceived as too risky by larger accounting firms.
Carrillo welcomes the professional firms entering the industry, “Kudos to the auditors, accountants, lawyers, credit unions, and consultants who made sacrifices to be at the forefront of an enormous opportunity. As the industry matures, we expect larger firms to make an entrance, and we look forward to it. We need all the help we can get to keep up with the industry’s rapid growth.”
ABOUT ADNANT: Adnant is an accounting and consulting firm headquartered in Los Angeles. The firm is widely considered an expert in accounting for the cannabis industry, working with cannabis clients since 2009. Adnant specializes in technical accounting, roll-ups, public listing process, biological asset valuation, merger and acquisition advisory, and strategic consulting. Their notable clients include MedMen Enterprises Inc., Verano Holdings LLC, Cresco Labs LLC, and NorCal Cannabis Co. Adnant took the first cannabis company public. To learn more, visit www.adnant.com
Published: November 28, 2018
Founder & Interim Editor of L.A. Cannabis News