(FULL VIDEO) WeCann Featured on Mainstage at Benzinga Cannabis Market Spotlight NJ

by Roger Tower on March 24, 2025

We’re excited to spotlight a major moment for the WeCann team – our CEO, Meilad Rafiei, was invited to speak on a featured panel at the Benzinga Cannabis Market Spotlight: New Jersey, one of the most respected gatherings for cannabis professionals, investors, and thought leaders.

Taking place on March 4, 2025, the event brought together key players in the Northeast cannabis market to exchange insights, forge new partnerships, and explore where the industry is headed. Meilad joined an all-star lineup of panelists and moderators to discuss the critical question: “How Are Financiers Valuing Your Assets?”—a topic that couldn’t be more relevant in today’s rapidly shifting financial landscape for cannabis operators.

Being selected to speak at this level is not just an honor for Meilad – it’s a strong recognition of WeCann’s work in helping cannabis businesses secure real estate, licenses, and banking solutions across the country. Keep reading for a full recap, panel recording, and key insights from the discussion.

Watch the Full Panel Discussion “In A Lender’s Shoes: How Are Financiers Valuing Your Assets?”

For those who missed the live event, we are pleased to share the full video recording of the panel discussion featuring Meilad Rafiei. Gain firsthand insights into how financiers assess cannabis businesses and learn strategies to enhance your company’s financial standing in this evolving market.

This insightful session delved into the methodologies financiers employ to evaluate assets such as real estate, brand value, sales, and profits within the cannabis sector. The discussion provided attendees with a comprehensive understanding of the critical factors that enhance a business’s appeal to investors and lenders.

Meilad contributed his expertise to the panel alongside distinguished panelists:​

• Samantha Gleit, Partner at Feuerstein Kulick LLP​

• Joseph Lustberg, CEO of Upwise Capital

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About Benzinga Cannabis Market Spotlight: New Jersey

The Benzinga Cannabis Market Spotlight series is a premier event dedicated to fostering high-impact networking and business growth within the cannabis industry. The New Jersey edition focuses on the state’s burgeoning cannabis market, addressing topics such as retail opportunities, supply chain logistics, regulatory compliance, and strategies for transitioning from the illicit market to a regulated framework. The event attracts a diverse array of entrepreneurs, investors, policymakers, and industry leaders, all converging to shape the future of cannabis in New Jersey and beyond. ​​

Meilad Rafiei & WeCann: A Pillar in the Cannabis Industry

Under Meilad Rafiei’s leadership, WeCann has emerged as a comprehensive consulting firm specializing in cannabis real estate, licensing, and business services. Meilad’s extensive experience and strategic vision have been instrumental in navigating the complex regulatory landscapes and unlocking opportunities for clients in the cannabis space. His participation in such a high-caliber panel underscores his commitment to advancing industry knowledge and supporting the growth of cannabis enterprises.

Join the Conversation

We invite you to watch the panel and share your thoughts in the comments section below.

What are your key takeaways from the discussion? How do you perceive the evolving valuation landscape in the cannabis industry? Let’s engage in a meaningful dialogue to further our collective understanding and success.

Benzinga Panel Summary:

Thank you, everybody, for joining us this afternoon at Benzinga. My name is Samantha Glight, and I’m with the law firm Feuerstein Kulick. We’re a small boutique law firm focused on the cannabis industry, but we serve companies and investors across the country. My area of expertise is debt finance, which brings me to this panel. We work on both the company and investor sides. I recently completed a large reorganization with Columbia Care, a cannabis company, which was a major project. In addition, we assist a lot of companies in navigating difficult times in a challenging market where liquidity is scarce. With that, I’d like to introduce our panelists today: Joe Lustberg from Upwise Capital and Meilad Rafiei from WeCann. Joe, would you like to introduce yourself?

Sure. I’m Joe Lustberg, Managing Partner of Upwise Capital, a full-service debt financing platform with about 100 lenders in our marketplace, including 40 banks that lend to cannabis. We handle everything from construction loans to equipment financing, lines of credit, mortgages, sale-leasebacks, and everything in between.

Hi, I’m Meilad Rafiei, CEO of WeCann. We are a licensing and compliance consultancy, and we also broker real estate—helping clients find viable properties—as well as business sales, including pre-operational licenses and businesses themselves.

As you may have guessed, what the three of us have in common is that we help companies and investors connect. We advise on both timing and strategy for raising capital. If you’re a company looking to raise funds, how do you make yourself attractive to investors? When is the right time to go out and raise? And how do you communicate your stage of growth and goals in a meaningful way?

To kick off the conversation: when thinking about valuation and how an investor views your assets, you must first define the purpose of your capital raise. Why are you raising money? Often, when I speak to operators or investors, it’s about taking on a secured loan—maybe to acquire another company, expand into a new state, or deal with something unforeseen, like COVID, that impacted liquidity. There are many reasons you might need capital or be ready to sell and wondering what your business is worth. Your context will set the stage for how a lender views your assets and determines their value.

Joe, can you talk about what investors are thinking when they assess a potential deal?

It really depends on the stage of the borrower—startup versus established operator with cash flow or positive EBITDA. Lenders want to see experience and skin in the game. You need to have invested equity or your own money to get to where you are. Most lenders want to see hard assets, like real estate, where they can secure a first lien position. They’re also looking for strong guarantors. If you’re not a multi-state operator (MSO), you’ll likely need to personally guarantee the loan—meaning you’re all in on the business.

On that note, Joe, when lenders require a personal guarantee, is it because they’re eager to seize your assets or more about showing commitment?

It’s more about commitment. From an underwriter’s perspective, they consider worst-case scenarios—crop failures, market crashes, anything that could put the borrower under. Most lenders aren’t “loan-to-own”; they just need to know that, in a worst-case scenario, there’s enough liquidity—real estate, equipment, and personal guarantees—to cover the loan. It’s a safety net, not an aggressive tactic. Predatory lenders exist, but many are disappearing. Still, cannabis operators face a “tax” in the form of higher rates, partly because lenders themselves don’t access cheap capital like banks. But for operators with assets and profitability who are willing to move deposits, bank loans are an option.

So, if you have a track record with positive cash flow or EBITDA—or hard assets like real estate—you’re more likely to get funding. Meilad, what’s your advice to companies approaching WeCann about financing and valuation?

It varies by market maturity. In a place like New Jersey, we’re often asked to put together pro formas when helping with licensing. We build these conservatively, expecting market downturns, and even show municipalities that the business can remain viable in tough times. Operators need to consider the terms of their financing. For example, if you’re getting a 2- or 3-year balloon loan, and your business may dip in that period, that’s a risk to assess upfront.

Emerging markets offer easier exits due to asset value increases. Even if your business isn’t cash flowing yet, you may see returns on asset appreciation. But in mature markets like California, cash flow is essential. Financing there is more often seller-financed. If you can justify the purchase within 24 months, that’s solid—many sellers offer 18- to 24-month financing.

There’s a window in each state—usually 3 to 5 years—before competition and price compression hit. I’ve seen thousands of pitch decks, and they all show the same hockey stick growth. The reality is often the opposite.

So, when’s the right time to raise if you’re a new license holder in New Jersey and not yet cash flowing?

We can finance as soon as you have a license—especially if you have property or need equipment. But the best time to raise capital is when you don’t need it—when you’re doing well. That’s when lenders offer the best terms. A story comes to mind: we offered a client in Massachusetts a construction loan at 15% plus points. He balked, saying it was hard money. I asked if opportunity cost or cost of capital was more important. He chose to raise equity and finance equipment later. The process took him 2.5 years. By the time he launched, cannabis prices in Massachusetts dropped from $3,000 to $1,200 per pound. The delay cost him big. In this industry, the cost of waiting can be more damaging than high interest rates.

Timing is everything, and it’s hard to navigate given the regulatory uncertainty. Meilad, when you talk valuations, what do you say to operators who think they should be valued based on sunk costs?

That’s a common misconception. People say, “I invested $20 million; it has to be worth at least $30 million.” But valuation is based on what the business can produce, not what you spent. For retail, one of the best exit points is before opening. Once open, the business has a long runway before profitability—unless you’re a big brand or in a great location. For cultivators and manufacturers, it’s about financials and potential. A buyer values the revenue they can generate—not what you endured to get there.

Joe made a great point: if you spend millions building a facility, lenders will only finance it based on its cannabis value—which is often lower and comes with a higher interest rate. Later, when you go to a bank, they’ll appraise the property based on comps—industrial real estate values in your area—regardless of how much you invested in cannabis-specific upgrades. That gap in valuation is real.

And unfortunately, bank loans above $5 million are rare. So your only option is high-rate cannabis lenders. If you’re profitable and get a 13% loan, that’s actually a win. It may sound grim, but it’s reality.

Here’s another distinction: valuation depends on purpose and perspective. Lenders want to know what they can sell your assets for in a fire sale. That’s a low number. But a buyer or industry lender may value assets higher because they understand their utility or synergy. While you’re paying a premium in interest, you may get a better valuation from someone who sees the operational potential.

What about licenses—can they be leveraged?

Not really. A license is just a piece of paper—a dream, as Joe put it. But if the license is tied to real estate, cannabis lenders may offer better terms than traditional banks. They understand the operational value better.

As we wrap up, are there any questions?

Yes, I have one. Everyone’s talking about industry consolidation. But if you look at the financials of these potential acquirers, many are in bad shape—refinancing at 12%, trading at $0.55 per share, and holding cash only because they haven’t paid 280E taxes, which probably won’t be forgiven. Meanwhile, they pitch acquisition deals based on 8% debt models. That doesn’t make sense.

That’s a great point. In distressed markets, buyers may still profit if they acquire at deep discounts and bring operational efficiencies. Sellers may also offer generous financing—24 to 36 months at 0%. But in markets like New York or Kentucky, where companies pay millions for non-operational businesses, it’s questionable. Without funding to sustain operations, it’s risky.

I’ll add that if those large acquirers are using debt to finance deals, their lenders must support the acquisition. That indicates those lenders believe the deal will lead to greater efficiency or profitability. So, while it may look risky, it suggests existing investors are still backing them.

Thanks again to everyone for joining. This was a great discussion with lots of practical insights for both operators and investors navigating capital raises in the cannabis space.