US cannabis companies have their fair share of problems, one of which is that they cannot deduct expenses or losses on their tax forms under section 280-E of the tax code.
However, this is not the case in Puerto Rico, which is just “steps” from the largest cannabis market in the world. For federal tax purposes, cannabis companies operating in Puerto Rico are classified as foreign corporations and are not required to pay federal tax on their income. Medical marijuana companies in Puerto Rico, which has a developed pharmaceutical complex, do not pay any federal taxes.
Located in a 420,000-square-foot former pharmaceutical property, PRICH Biotech Corp. is the most important cannabis company in Puerto Rico. What started as a real estate investment in the city of Humacao became the most important vertically integrated cannabis business in Central America and the Caribbean.
“Nothing better than a pharmaceutical to enter this world, we have state-of-the-art technology facilities. It would have been possible to build it from scratch,” says CEO Munir Kabche in an exclusive interview with Benzinga. “12 of the 20 best-selling medicines in the US are manufactured in Puerto Rico. We have different tax laws than the other 50 US states. We have 353 employees, and 28 dispensaries and we represent 40% of the market today.”
From Real Estate And Finance To Cannabis
Sometimes we forget that cannabis is also a real estate investment. We often think of cultivation, but there is another way to tap into the industry. Whether by converting laboratories or acquiring strategic positions, real estate stands out as a gateway to the cannabis economy. And indeed, PRICH can attest to that.
“We made our investment with that criteria,” says Kabche. “We are in several industries, and from each one, we have learned lessons that we apply to …