Move to MRB banking expected to help facilitate growth, maximize shareholder value
DOVER, DE / ACCESSWIRE / July 19, 2022 / Hero Technologies (OTCQB:HENC; Twitter: @heroicmindtech), a cannabis company focused on a "seed-to-sale" vertical integration strategy, today announced that it has migrated its banking operations from traditional financial institutions to banks that specialize in marijuana-related businesses (MRB). The company expects that the move to MRB banks will facilitate its compliance with state and federal financial regulations and help it manage cash and financial risk as it grows.
Banking for MRBs is challenging due to the varied regulations across the U.S., the cash-intensive nature of the marijuana business, and the explosive growth of the cannabis industry.
While marijuana is currently legal in 19 U.S. states and decriminalized and/or approved for medicinal use in 20 others, it remains illegal at the federal level. This creates a complicated financial compliance landscape. MRB banks specialize in the due diligence and oversight required to ensure compliance across this varied regulatory landscape.
Compared to sales in other industries, legal marijuana transactions are disproportionately in cash. This results in further oversight challenges for banks, as well as additional costs, such as transportation and security. MRB banks are set up to manage these specific issues.
The legal cannabis market is expected to grow to $57 billion worldwide by 2027, which presents both opportunity and risk for financial institutions. The structure of MRB banks is designed to support this rapid acceleration of legal marijuana markets.
"We are excited to move from traditional banks to MRB financial institutions," said Hero Technologies' CEO, Gina Serkasevich. "We believe that backing from MRB banks will give us the specific financial tools we need to effectively execute our seed-to-sale cannabis market strategy. We are confident that this banking transition will help us manage rapid growth and maximize company value for our shareholders."
About Hero Technologies
Hero Technologies Inc. is a cannabis company working toward a vertically-integrated business model. The company owns a majority stake in BlackBox Systems and Technologies LLC, an aeroponic cannabis cultivation system that provides optimal growing conditions to enhance photosynthesis and cultivation of large flowering plants, creating increased harvest efficiencies. The company's strategic business plan includes cannabis genetic engineering, farmland for both medical and recreational cannabis cultivation, production licenses, distribution licenses, consumer packaging, and retail and dispensary operations that make the company a multi-state operator (MSO).
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may include: management plans relating to the proposed project; the expected timing of the completion of the proposed project; the ability to complete the proposed project; any statements of the plans and objectives of management for future operations, products or services, including the execution of plans proposed project; any statements of expectation or belief; projections related to certain financial metrics; and any statements of assumptions underlying any of the foregoing. Forward-looking statements are typically identified by words such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "may," "outlook," "plan," "project," "seek," "should," "target," "will," "would" and other similar words and expressions or negatives of these words. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time and are beyond our control. Forward-looking statements speak only as of the date they are made. Neither Hero Technologies Inc. nor its holding company or subsidiaries assumes any duty and does not undertake to update any forward-looking statements. Because forward-looking statements, by their nature, are uncertain or assumptive to varying degrees, actual results or future events could differ, possibly materially, from those that Hero Technologies Inc., its holding company or subsidiaries anticipated in the forward-looking statements, and future results could differ materially from historical performance.
Hero Technologies Contact:
Ms. Gina Serkasevich, CEO
(302) 538-4165 | gs@herotechnologiesinc.com
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SOURCE: Hero Technologies Inc.
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