I like being a cannabis business lawyer. It took a while for me to get there. I certainly didn’t think I would be doing this while I was in law school, or at the start of my career. Like a lot of things in life, it just sort of… happened. And I’ve learned a lot
Many folks in the cannabis industry – especially legacy operators – have little to no experience with corporate governance. I don’t mean to say that they don’t know how to run a business; they likely do. What I mean when I refer to corporate governance is the actual process of adhering to governance agreements, getting
When going into business—whether cannabis or otherwise— the first step is to create a business entity. (This seems obvious but still eludes many in the cannabis industry.) One of the principal purposes of establishing a business entity to limit the personal liability exposure of the founders. Typically, the business entity itself and not the investors,
The Los Angeles Social Equity Verification period came to an end at 4pm on Monday, July 25th. Recall that verification is required to enter into the Social Equity Retail Lottery this Winter. The verification period will be followed by a 90-day review period. Then, the Department of Cannabis Regulation (DCR) will notify qualified applicants of
In the 21st century of cannabis, cannabis businesses of all sizes still ignore some contract basics. Whether it’s a cannabis distribution agreement, a cannabis intellectual property licensing agreement, or some form of cannabis M&A, the contract basics listed below need attention. Date the agreement This seems obvious and trivial, but a lot of companies skip
Inflation has been dominating the headlines lately. Prices for gasoline, food (e.g., beef, bacon, eggs), used cars and many other items have spiked over the past year. It seems like there is always breaking news of the latest shortages – baby formula, tampons, eggs, semiconductors, sriracha, lumber, bicycles, etc. Cannabis, however, has seemingly been immune
Cannabis businesses need money – and lots of it – to operate. Being mostly startups, operational profits are not enough to sustain their business. So cannabis businesses take on outside capital generally in one of two ways: taking on debt from cannabis lenders or bringing in equity investors. Due to industry volatility and a crash
Complying with cannabis business regulations presents a challenge for start-ups and smaller firms. Corporate and regulatory attorneys often help clients understand and comply with complex regulations. This is especially true in the cannabis industry. In the United States, many industries lack well thought out regulatory policy. Some industries, like cannabis, suffer from over-regulation, overwhelming smaller
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).
One of the most important decisions a new cannabis business can make is the form of entity it will use. In fact, one of the first questions businesses ask is whether the right entity for a cannabis business is a limited liability company (LLC), corporation, or something else. Like basically every other legal analysis, the
