bankruptcy

Marijuana Bankruptcy: The Answer is Still “No”

The struggles of failing marijuana businesses to wind down and pay creditors in an orderly fashion serve no one. Among the problems marijuana businesses face such as lack of access to banking and onerous taxation stemming from IRC 280E is the lack of access to bankruptcy proceedings. This post discusses a  Michigan-based medical marijuana company

cannabis marijuana bankruptcy

Cannabis Bankruptcy 101

In a prior post, we discussed some of the emerging trends for cannabis-related companies that seek bankruptcy protection (click here to view the prior post). But, in the first instance, the question is whether a cannabis-related company can file for bankruptcy relief? This post will examine the first decision from Arizona in the case of

cannabis marijuana bankruptcy

Current Trends in Bankruptcy for Cannabis Companies

In a recent bankruptcy decision by the Ninth Circuit Bankruptcy Panel (“BAP”), the BAP had the occasion to explore some of the intricacies of how the Bankruptcy Code interacts with the cannabis industry. Burton v. Maney, 610 B.R. 633 (B.A.P. 9th Cir. 2020) (“In re Burton”). While, generally, a putative debtor cannot enjoy the protections

Bankruptcy Hemp

The Option of Bankruptcy Grows Clearer for Hemp Businesses

As we’ve written about before, bankruptcy hasn’t been a viable option for cannabis businesses, including ancillary businesses that derive any portion of their revenue from cannabis. That was expected to change for hemp and CBD businesses after the 2014 Farm Bill, and especially after hemp was legalized as a commodity under the 2018 Farm Bill

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Cannabis Litigation: U.S. Trustee in UCANN Bankruptcy Requests Marijuana Patent Infringement Case Dismissal

For over a year my colleague Jihee Ahn, an experienced intellectual property litigator, has tracked the first-ever cannabis patent infringement case United Cannabis Corporation v. Pure Hemp Collective Inc. (You can read about extraction, prior art, the Alice test, and claim construction process  here, here,  here, here). Recently she wrote about the anti-climactic end to

snails racing near the finish line

Cannabis Litigation in the Time of COVID-19

Last week, I wrote about the sad and anti-climatic ending of the first cannabis patent infringement case. UCANN is in the same predicament as many other businesses in the industry, and most experts expect the pandemic to create a surge of bankruptcy cases in the second half of this year. Civil courts are seeing tons

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An Anti-Climactic End to the First Cannabis Patent Litigation?

Our last update on the first-ever cannabis patent case, United Cannabis Corporation (“UCANN”) v. Pure Hemp Collective, Inc. (“Pure Hemp”) was back in July 2019. A lot has changed in the world since then (although the case was largely unremarkable), and the possible ending to this once-deemed “pivotal” case for the industry may now face

cartoon of a man drowning holding a help sign

Cannabis Patent Holder UCANN Files for Bankruptcy. Will it Work?

Colorado-based United Cannabis Corporation (“UCANN”) filed for Chapter 11 bankruptcy protection on April 22. Regular readers may recall that UCANN is the plaintiff in the first ever cannabis patent protection case which generally concerned liquid cannabinol formulations of a purified CBD and/or THC greater than 95%. That litigation is now stayed (paused) as a result

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California Cannabis Breaches, Lawsuits and Shake-Ups, Oh My

Even though they’re currently deemed “essential“, California cannabis businesses were already struggling financially before the onset of COVID-19. Increasing competition from unregulated, un-taxed, illegal actors combined with high local and state taxes combined with costly and competitive local barriers to entry were all leading to delayed opening timelines, shorted budgets, terrible margins, and increasing failures

Cannabis in California

Receivership and Distressed Cannabis Assets in California

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