The goal is to create an industry standard to make it easier to understand the risks and benefits
The lending and investment sector in the cannabis industry continues to expand. As this becomes a reality, CTrust wants to keep better track with a commercial credit score, an activity that is very common in traditional industries. The firm is pioneering this implementation and wants stakeholders in the burgeoning market to understand what the risks and benefits really are going forward.
CTrust has spent the last ten years researching and analyzing the cannabis market. As a result of its findings, it has finally decided to unveil the first cannabis business credit score of its kind, the Cannabis Trust Score (CTS). The main objective of this tool is to provide a comprehensive, sophisticated and proven formula for assessing investment risk while providing clearer exposure to the ever-growing industry.
CTrust already has an existing Evaluation, Scoring and Monitoring (ESM) program, and now CTS will join as an integrated solution. The idea behind this move is to increase financial and operational transparency for marijuana companies seeking optimized and more cost-effective access to needed growth capital. Investors and lenders are not left out of the equation, as they will be able to obtain a verifiable, quantifiable and systematic process by which to navigate the deployment of capital in the space.
“What I call Cannabis Investing 4.0 has not been kind to businesses or investors over the past two years, with very limited capital available only to a select few and at extremely high costs,” said CTrust Founding Member and CEO Giadha A. DeCarcer. “CTrust lays the foundation for a cannabis investing reset, whereby improved business transparency and reduced investment risk allow creditors to effectively price capital and better manage exposure, which together are the basis of a more balanced and mature cannabis capital market.”