High Five: Darren Gleeman

What’s the biggest challenge facing the cannabis industry right now, and how are you and/or your company addressing it?

The biggest challenge right now is cash flow. With federal regulations still uncertain, access to banking and traditional financing remains difficult, making cash management a top issue for cultivators.

MBO Ventures is addressing this by focusing on ESOPs (Employee Stock Ownership Plans), which allow cannabis companies to pay zero income taxes (state and federal). This means a company owned 100% by an ESOP can more than double their cash flow.

Where do you see the most exciting opportunity for growth and innovation in cannabis?

The most exciting opportunity lies in the consolidation of boutique cannabis companies. These smaller firms, while often possessing strong customer loyalty and unique brands, will face increasing difficulty competing against larger, multi-state operators.

Currently, there isn’t a major consolidator in the space for smaller firms, but it’s only a matter of time before this changes. The right model or approach—potentially even something innovative like an ESOP—could emerge as the solution.

Consolidation offers the chance to achieve operational efficiencies, access to advanced technology, and gain stronger negotiating power across the supply chain. By integrating these companies into a larger, more streamlined operation, it’s possible to maintain their distinct local appeal while capitalizing on the benefits of scale. The future of growth in cannabis will be driven by how effectively these businesses are consolidated and optimized.

What’s one piece of advice you would give to someone looking to break into the cannabis industry?

One piece of advice for anyone looking to break into the cannabis industry is to focus on getting a license in a state where cannabis has recently become legal. In these emerging markets, margins are huge, competition is minimal and you will have customers lining up —this is where you can really print money.

On the other hand, entering a state that’s been around for a while, like California or Oregon or Michigan is a much riskier endeavor. The competition is fierce, and margins are shrinking, making it very hard to succeed. So, target new markets and be prepared with enough cash flow to stay competitive as the market develops.

What is the most important thing you have learned from your experiences in the cannabis industry?

Besides cash flow… the most important thing I’ve learned is that resilience is key. The rules are constantly changing—whether it’s 280E, banking issues, or the lack of federal legalization. But those who adapt quickly and stay flexible are the ones who thrive.

You can’t just think about today’s profits; you need to build a structure that can withstand the volatility of this industry and be ready for the opportunities that will come when regulations finally catch up.

What do you want your legacy to be as it relates to the cannabis industry?

I want my legacy to be that I helped transform how cannabis companies think about ownership and sustainability. I believe that ESOPs can be a game-changer for this industry. It’s not just about making money; it’s about creating long-term value for employees, companies, and the communities they serve. If I can be known for bringing that vision to life, helping cannabis companies weather the ups and downs, and ultimately shaping a more equitable and sustainable industry, that would be the legacy I’m proud of.