It’s been an eventful month in Oregon cannabis. Below are some early summer notes on three things we’ve been doing and watching and writing about. The Chalice receivership I covered this last month as the ship was going down. Today, the Oregon receivership is well underway and we’re getting regular notices. It hasn’t been smooth
The OLCC rulemaking process continues after a public hearing on October 25 and the close of the public comment period on October 31. You can read our prior coverage here, here and here, and you can read the proposed rules here. The public hearing lasted about 35 minutes and a hot topic was whether retailers may
Contract dates are among the most basic, fundamental aspects of any contract– cannabis or otherwise. Nevertheless, parties often mess them up or overlook them in potentially disastrous ways. Today, I want to look at a few key contract date issues and what they mean. Key contract date terms An execution date is the date on which
We have been helping people buy and sell Oregon cannabis businesses since the early days of the adult use market. Most of these sales are relatively simple asset purchase agreements—including many for naked licenses—but some have been stock sales. Others have taken place amid administrative enforcement action by the Oregon Liquor and Cannabis Commission (OLCC).
Who is a “qualified applicant” under Oregon’s new marijuana license reassignment program? First, some context. House Bill 4016, which introduced the reassignment concept, represents a sea change for Oregon’s licensed marijuana industry. The bill presently awaits signature by the Governor, and no one is betting it won’t become law. Our take on all of Oregon’s
One of the most common commercial cannabis lease structures is what is commonly referred to as a “triple net” or “NNN” lease. Triple net cannabis leases allow landlords to pass on nearly all operational costs associated with a property to a tenant, which can be a big benefit for both landlords and tenants. Today, I’ll
Some readers may be surprised to realize that a lot of cannabis stakeholders actually don’t want broadsweeping federal legalization. Why? Because they know it means that they’ll instantly be competing with well-established companies that are already masters of economies of scale, branding, marketing, and consumer sales, and their market share will shrink or be eliminated
Last month, I wrote a post explaining some of the issues buyers of cannabis businesses face when dealing with the landlords for the purchased business. In a nutshell, leases almost always contain clauses restricting assignment and subletting, and these clauses will often note that certain changes of control of the cannabis tenant are considered assignments
Getting to closing on a cannabis M&A transaction is always a hurdle (read about that process in detail here). There are always a lot more contingencies to closing for cannabis M&A transactions than for run-of-the-mill businesses that don’t operate in highly regulated fields (e.g., cannabis acquisitions will require approval from state and possibly local agencies).
Every single business that wants a cannabis license in California needs to buy or lease property, because licenses are tied to properties. Cannabis businesses usually opt for leases rather than purchases given the uncertainties in getting licensed or succeeding in business, and sometimes capital constraints. As part of the licensing process, state and local agencies
