Towards the end of 2019, it seemed that cannabis investments had all but dried up. Today, our cannabis lawyers are seeing a huge uptick in investment transactions of all kinds in cannabis and hemp businesses. With investments on the rise again, we plan to do more posts on various legal aspects of cannabis investments. At
Keeping up with the multitude of (shifting) state and municipal cannabis regulations is a daunting task for any multi-state cannabis operator. One well-known tool for doing so has been CannaRegs, which offers a web-based subscription service to aggregate and organize cannabis rules, regulations, and legislation. In January 2020, CannaRegs was acquired by Fyllo, “a digital
Recently the Securities and Exchange Commission (“SEC”) adopted final amendments to expand the definition of an accredited investor, something that has not happened in nearly 40 years. This is a big deal for cannabis companies (and all other companies) that are in fundraising mode because many of these companies rely on Rules 506(b) and 506(c)
The officers, directors, partners, members and managers of cannabis companies need to understand what constitutes a “security” and how to comply with applicable securities laws. The failure to do so may result in their personal liability for securities fraud. Let’s start with what constitutes a “security.” As my colleague Jonathan Bench recently explained in layperson’s
If you have spent much time around the world of private capital raising, then you know that there are only two avenues for a company that wants to bring on investors. Either you register your capital offering (equity, debt, or some hybrid) or you find a state or federal filing exemption that you can qualify
I can’t count how many times I have been talking to a client about a business venture, and I stop them in the middle of their explanation and say, “You just issued securities.” I get a blank stare looking back at me. Then I say, “Securities is one thing you do not want to get
As I mentioned in a prior post (see here), we have been fielding regular inquiries from international cannabis companies that want to engage with the U.S. market by selling raw hemp or cannabis, distillates (including cannabinoids), and products, including products that have been proven in their home markets. How to Enter the U.S. Market High-Level
Although COVID-19 is causing much of the world to slow down, business deals in many industries continue. Companies continue to seek strategic acquisitions, partnerships, and investments as they enter new international markets or seek to relocate a portion of their business or supply chain from higher-risk markets, such as China, to lower-risk markets in Southeast
Two major President Trump-centric events have been unfolding these past few weeks, and each has alternatingly claimed the limelight and been overshadowed by the other. First, we have the ongoing Senate impeachment hearings, which began January 16, and second, phase one of the U.S.-China trade deal, which was signed and made public on January 15.
One of the most fundamental questions facing any businessperson in the cannabis industry and every other industry is: “What type of business entity should I use?” This is such a loaded question that your lawyer or accountant will first respond with, “That depends,” and then they will need to ask you at least ten follow-up
