Risky Business: Cannabis Security Interests and Secured Transactions

As a corporate and transactional attorney focused mostly on cannabis, I see my fair share of financing documents and transactions involving cannabis operators. It’s no secret many cannabis businesses can’t get bank accounts or loans or lines of credit from financial institutions because of the Bank Secrecy Act and federal anti-money laundering laws — despite

Utah Cannabis Investment Fraud: Know Your Securities Laws

It is trite of me to say so, but the current “gold rush” in the U.S. has prospectors dreaming of double-fisting cannabis buds and greenbacks, and that makes for fertile fraud soil. In this green rush, investors are voraciously putting money into cannabis ventures that are, in some instances, producing vast amounts of cash and

Cannabis and Insurance Litigation

Recently, Jonathan Bench wrote about the importance of insurance coverage for your hemp or recreational marijuana business. His first article provided the basic anatomy of such policies and his second discussed the importance of product liability insurance. This post highlights recent litigation in which insurance is at issue, or ought to be. Hemp insurer seeks

canna law blog

Cannabis Business Basics: Product Liability Insurance is a Nonnegotiable Priority

With Juul recently in the news and vaping bans going into effect around the country (see our recent coverage here, here, here and here), marijuana companies have been asking us questions about what to expect in the near term. In the midst of this uncertainty, we have been stressing to our clients the importance of insurance coverage

canna law blog

Five Common Problems in California Cannabis M&A Transactions

Now that we’re about two years into California cannabis licensing, our California cannabis attorneys are seeing a huge uptick in mergers and acquisitions in the cannabis space. It’s critical for potential M&A transactions to understand California cannabis laws and regulations and ensure that any M&A contracts are drafted with the regulations in mind. This is

canna law blog

Terrible, No Good California Cannabis Distribution Contracts

Since January 2018, distributors have played an interesting role in California cannabis. From a regulation perspective, dealing with a distributor is not optional. However, from the business decision vantage point, they’re not all that necessary. Still, some manufacturing and cultivation licensees opt to utilize distributors for sales and retail relationships with the distributor attempting to

canna law blog

Is Bankruptcy Protection on the Horizon for Cannabis Businesses?

As most of us know, bankruptcy is just not an option for the cannabis industry or those even affiliated with it. To date, courts have generally ruled that debtors who work in the cannabis industry or derive meaningful income from cannabis activity (directly or indirectly) cannot use bankruptcy. This is in response to the U.S.