Virtually any time that there are transactions involving cannabis company mergers, cannabis company acquisitions, or cannabis real estate sales, and in many cases involving the sale of assets of a cannabis company, the parties are likely to encounter a concept called “closing” in their purchase agreements. Closing isn’t necessarily unique to purchase and sale situations
The landlord-tenant relationship is probably the most challenging relationship in the cannabis industry. We’ve seen a lot of deals go south over the years, and while partnership disputes are very common, landlord-tenant disputes are also frequent and in some cases are even more common than partnership disputes. There are a lot of factors at play
Last year, I wrote a post entitled “Cannabis Leases: Eight Important Tenant Considerations“. The post outlined eight of the more important considerations for tenants entering into cannabis leases. Today, I want to focus on some of the top considerations for landlords in leasing to cannabis tenants. 1. Compliance with Mortgages Landlords that do not outright
In a word, yes. A lawsuit recently filed in Jackson County, Oregon by a tenant alleges that his landlord has wrongfully evicted him from a warehouse containing 36,000 pounds of hemp, which the plaintiff alleges will be worth $1.5 million when processed, and 500 pounds of trimmed flower with a market value of $175,000. (Marks
Buying and selling Oregon cannabis properties can be pretty interesting. We have helped negotiate and paper a ton of these sales going back to 2015 or so. The deal book includes everything from small commercial lots in the City of Portland (for retail dispensaries) to large sawmill properties in Southern Oregon (for hemp processing conversion).
Insurance is a key part of any business, including cannabis businesses. As Jonathan Bench has explained: Insurance in the cannabis industry is big business, and business owners need to know what policies are available and what those policies cover. Why? Because in insurance policies, like all other business contracts (e.g. leases), the risk of a
Cannabis laws give landlords a unique amount of control and bargaining power over tenants. This usually translates to above-market rent and one-sided lease agreements. Fighting with landlords is no fun, especially for cannabis tenants who cannot simply relocate to a new property and must deal with their lessor for the life of a license. In
A lawyer I know once told me that the primary motivation behind drafting a contract should not be making each party’s obligations clear or negotiating better terms, but instead should be ensuring that when there is litigation, that party is in the best possible position to win. Having written and litigated numerous contracts, I could
The Basics of a Cannabis Insurance Policy Insurance in the cannabis industry is big business, and business owners need to know what policies are available and what those policies cover. Why? Because in insurance policies, like all other business contracts (e.g. leases), the risk of a business venture is divided between the contracting parties. Your
Succeeding in the cannabis industry is not easy, especially in California. Complex regulation, high taxes, expensive real estate, and competition with the black market are just a handful of factors that challenge cannabis businesses. The majority of players lack sufficient reserves and agility to stay in the game. Due to the substantial upfront costs required
