Cannabis has always existed in the atmosphere of the fringe. In the thirties, musicians and jazz artists sang songs. Later in the sixties, hippies and Yippies marched for legalization. It was a badge of honor to be a cannabis consumer and an outlaw.
Then, California legalized medical marijuana, followed by Washington’s and Colorado’s legalization of adult-use cannabis. Both of the progressive states launched legal, regulated markets without the intervention of Wall Street capital. The inability to legally bank these businesses at major banking institutions was a ‘no-go’ for Wall Street. It wasn’t until Canada opened its banks and stock exchanges to cannabis companies that the sector became a target for investment bankers.
Green Rush
“If you look at the evolution of why things go public, it’s usually, sometimes it’s a means to get big financing,” said Seth Yakatan of Katan Associates. “In cannabis, it was a vehicle that had a window (for financing), and that window opened really quickly, and many things ran through that window before it very abruptly closed.”
As Yakatan stated, most of the Wall Street businesses that helped create capital for cannabis companies and take them public have since moved on. Plunging stock valuations and a lack of legalization action at the Federal level in the U.S. caused many to pack their bags, take their toys, and leave. Equity analysts covering the sector have largely disappeared, and several former publicly traded companies have either gone into receivership or been acquired by other companies. All of this sounds depressing, but is it?
No Suits Required
The thing is, cannabis doesn’t need Wall Street. It will be just fine without it. Indeed, it could easily thrive on its own.
Several states have demonstrated that private cannabis companies can be successful. To be fair, they have taken investment capital, but they opted to remain privately owned. There are many benefits to remaining private. For example, a private company may have a product that isn’t performing well and so it ends production of the product. A public company making that same decision would get criticized for reducing a product line, with rumors flying that it must be facing financial pressure since it isn’t continuing the product.
“Being a private company means we can build strength in New York without being distracted,” said Michael Kandhorov, co-founder, MFNY. MFNY is a New York State certified cultivator, processor and distributor, and is among the most popular brands in New York dispensaries.
Kandhorov added, “Public companies answer to investors first; we answer to our customers. At MFNY, we have the agility to move quickly, make smart decisions, and adapt in a turbulent market, because we are private. We can invest for long-term market leadership and expansion without the ‘make the quarter’ pressure that plagues public companies.”
That also means they didn’t have to hire expensive accountants, investor relations and lawyers that specialize in publicly traded companies.
“Going public in cannabis means hiring an army of lawyers, accountants, and compliance officers whose sole job is to keep you in line with the rules, instead of focusing on building and optimizing cultivation, R&D, and our team,” added Kandhorov. “At this moment in time, it makes more sense to put that investment into what we’re building here in New York so when the time comes to expand, our foundation is solid and strategic.”
More Private Winners
MFNY isn’t alone. Yakatan easily rattled off several names of private cannabis companies that are succeeding. “Good Day Farms and Jeeter and Wyld, to name a few,” he said. He’s right. Good Day Farm has five medical marijuana dispensaries in Louisiana, according to its website, along with six in Arkansas, five in Mississippi, and 21 in Missouri.
Jeeter is active in several states with legal recreational marijuana sales, including Arizona, California, Massachusetts, Michigan, and Canada. According to Headset, it had over $25 million in sales in July 2025. Wyld is also performing well, and Headset wrote that its “performance in the Edible category remains impressive across several states, consistently maintaining the top position in Arizona, California, Colorado, Illinois, Michigan, Nevada, Oregon, and Washington over the past four months.” It is also pegged to have done $25 million in sales in July.
“There are probably a few more up there in that kind of echelon, including Grove and Grön edibles. And I’d probably put Timeless in there as well,” said Yakatan. “I think you have a bunch of private multi-state operators, including C3, Nova Farms and Standard Wellness, that are successful.”
Cannabis should embrace its outlaw heritage and take its own path to success. No more striving for the exchanges or sucking up to Wall Street bros. It doesn’t need any of that. It will do just fine on its own.
Companies can also rest easy knowing the path to success doesn’t have to be routed down Wall Street. It can stay on the outskirts of polite society and still be winners.
Photo by Daniel Lloyd Blunk-Fernández on Unsplash
