Marijuana business firm Terra Tech Corp (OTCMKTS:TRTC) has discovered that insurance could be one of the major challenges that the marijuana business will come across.
Terra Tech CEO Derek Peterson’s application for life insurance was turned down apparently because of his affiliation with the industry and not because he uses marijuana as was the expected reason. In one of his statements, Peterson stated that he had always thought that the use of marijuana would be one of the reasons why someone would be denied insurance. However, he did not think that he would end up being denied insurance because of his association with the marijuana industry.
Peterson views this as a major problem for his business because it prevents him from offering insurance to his employees. The hardship of getting insurance services is just one of the many challenges that marijuana businesses have encountered on their journey to establish themselves. The marijuana industry may be experiencing good growth but according to Peterson, marijuana businesses find it difficult to acquire financial services let alone insurance.
The CEO also revealed that marijuana businesses have a hard time getting healthcare and retirement plans for their workers. They also find it hard to get a company that will draft insurance policies for them. According to Peterson, state regulations also have a significant impact on marijuana firms. His firm cannot offer its Nevada employees the same benefits that it offers to employees in Northern California. Nevertheless, the marijuana industry is working with lawyers towards formulating structure so that they can overcome some of these issues.
Peterson also noted that there are very many regulatory issues that the marijuana industry would like to be changed especially in different states. There is a lot of money to be made from marijuana and businesses want to thrive. However, there are benefits that they must offer to their employees for them to reach the level of success that they desire. The CEO also highlighted that marijuana firms have been focusing on operating within the scope of the law so that their operations can also continue.
Lotus Bio-Technology Development Corp (OTCMKTS:LBTD) Bullish About Growth Prospects in China
Lotus Bio-Technology Development Corp (OTCMKTS:LBTD) remains bullish about its prospects in the industry given the ongoing growth in China’s organic consumables industry. Even though organic food currently accounts for just a fraction of China’s food industry, demand continues to grow seen by revenues in the sector more than tripling between 2007 and 2012.
Lotus Biotechnology has since resorted to establishing long-term and strategic partnerships with various biological companies as it looks to curve some market share for itself in the industry. Deals with the likes of Humana Cangshi Biological Technology Ltd and Phyto Nutraceutical Inc intended to bolster the company’s position in the industry as it looks to come up with new products as well as fuel cells.
With demand for organic food product on the rise, Lotus Bio-Technology Development Corp (OTCMKTS:LBTD) opportunities for growth in the industry are endless, given China’s population size that acts as a reliable target market.