- TransCanna Holdings (TCAN) subsidiary, Lyfted Farms, has opened two banking accounts with a California-based credit union
- The bank accounts will service Lyfted Farms’ licensed cannabis commercial activity, and help merchandise its branded apparel
- Lyfted Farms’ payroll and vendor payments will now be dispatched through conventional banking methods, via the credit union accounts
- The company’s new accounts will become operational by September 15, 2020
- TransCanna Holdings (TCAN) is up 0.94 per cent and is currently trading at C$1.07 per share
TransCanna Holdings (TCAN) subsidiary, Lyfted Farms, has opened two banking accounts with a California-based credit union.
The credit union is a local one, based in the same state where TransCanna and Lyfted Farms conduct most of their operations.
The financial institution spent over a year conducting due diligence on Lyfted Farms, before it was ready to open the bank accounts. This due diligence included on-site visits which the credit union made to Lyfted Farms’ facilities.
The first bank account is to service Lyfted Farms’ licensed cannabis commercial activity. The second account is for the Higher Standard Apparel Co, which merchandises Lyfted Farms-branded apparel.
The two credit union bank accounts should become operational by September 15, 2020. After that, Lyfted Farms’ payroll and vendor payments will be dispatched through conventional banking methods. As such, the transactions will take less time and will be less expensive to process.
Federal prohibition of cannabis in the United States has extended into the mainstream and non-credit union banking system. This has put a strain on legitimate and legal businesses, particularly in how they conduct transactions.
In particular, many licensed cannabis companies are forced to conduct large transactions in cash, which is a cumbersome and less secure process. Lyfted Farms’ bank accounts with this credit union will put those days in the past for the company.
This is a landmark development for Lyfted Farms, as this is the company’s first access to traditional banking services. It is also a first for the credit union, which up until now has never had a cannabis-based business client before.
TransCanna’s CEO, Bob Blink, commented on this financial milestone for the company’s subsidiary.
“We are pleased to be working with a local California-based credit union as our financial services provider.
The organisation has been servicing this community for decades and was founded by agricultural producers who, like us, live and work here, so we look forward to working with a respected organisation that has the same level of appreciation for our market and our community as we do.
“Our growth is making banking a greater necessity with every passing day,” he said.
TransCanna Holdings (TCAN) is up 0.94 per cent and is trading at C$1.07 per share at 2:45pm EDT.