HARDCAR Distribution Secures the Ability to do $1B in Escrow for Businesses in the Cannabis Industry
After successfully completing its first $50 million escrow account, HARDCAR is now able to do $1 billion plus, a major advancement for the blossoming cannabis industry.
January 8, 2019 – (Palm Springs, CA) – HARDCAR Distribution announced today that it has secured the ability to do $1 billion in escrow. The company has been working diligently to support the cannabis industry over the past 3 years, searching for ways to help their clients in any way possible.
Ten (10) states and Washington, DC have legalized recreational cannabis for adults 21 and over, while 33 states have legalized medicinal cannabis. However, high taxes on licensed operators, expensive and drawn out regulatory processes, and an unregulated black market have caused legitimate cannabis operators and those wanting a piece of the action to be weary. In addition, the federal government still classifies cannabis as a Schedule I substance under the Controlled Substances Act, forcing conventional banks to avoid lending money or provide escrow.
On the flip side, the potential for the cannabis industry is massive. Cowen & Co. estimates that the US market alone could reach $75 billion by 2030 if fully legalized, and financing solutions for proper growth are an absolute must. Enter HARDCAR Distribution and its ability to offer escrow over $1 billion.
“Cannabis companies struggle with ability to move money legally, escrow enables deal flow to happen in massive amounts. This allows companies to manage their funds, facilitate deals, and boost transactions like sales of products or acquisitions of companies. We’ve been searching for a way to help our customers in this area and we’ve now secured that opportunity.” – Todd Kleperis, CEO of HARDCAR Distribution
Whether its a buyer, seller, lender, or borrower, businesses want the comfort of knowing that no funds or property will change hands until all instructions in the transaction have been followed and conditions have been met. HARDCAR maintains the privacy of the consumer while safeguarding funds and documents while they are in their possession. When all conditions of the escrow transaction have been met and the parties agree, HARDCAR will disburse funds and record the documents conveying the transaction.
With leadership roles in the nation’s top cannabis associations, groundbreaking advocacy meetings with government officials, unprecedented partnerships with credit unions to provide viable banking services, and now the ability to provide escrow to cannabis businesses, HARDCAR is clearly a leader in the cannabis industry. For more information, please reach out to:
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