In the years since Massachusetts legalized first medical, then recreational, cannabis, the money tree has dried up. Few investors have made a profit, and the industry is approaching an inflection point: Scores of businesses failed outright, and many that remain are struggling. A seemingly inevitable “gold rush” turned out instead to be a fleeting opportunity, especially for minority-owned ventures that comprise only a sliver of the market.
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Frank A. Segall, chairman of the cannabis industry group at law firm Blank Rome in Boston, expects to see more receiverships, where a third party manages a marijuana company’s assets and pays back creditors. Segall helped draft the state guidelines two years ago, knowing that a growing number of cannabis businesses would need to liquidate or restructure, then helped shepherd the state‘s first cannabis receivership in 2023.
“If you want an industry that can attract capital, you have to have protective rights for creditors,” Segall said.
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"Cannabis Industry in Massachusetts Has an Investment Problem," by Diti Kohli, was published in the Boston Globe on May 1, 2025.