If you’re still at the point where you are playing lawyer sometimes or all of the time with your cannabis business contracts, then this post is for you. I grew up in rural Wisconsin with two parents who were raised in the wake of the Great Depression. My parents had a bunch of kids, and
There are a lot of bad ways to set up a cannabis business, and we like to think that we’ve seen them all. But there’s probably no worse category than 50/50 ownership of a business – a recipe for all sorts of disasters. Let’s look and why that is, and some ways to avoid it.
By and large, cannabis businesses are small businesses. We’ve represented hundreds of these businesses over the years, in many states. Within these businesses one finds many kinds of people. They include legacy operators transitioning from traditional markets, to well-heeled investors coming from industries like banking and private equity. And everyone in between. Of course, performance
Over the years in my practice, including several instances in the past six months, I have advised cannabis business owners when a former partner has come back to haunt the business operations, usually looking for some type of payout based on a prior conversation or an agreement originally inked upon a lost napkin or envelope.
Certain states are better than others when it comes to lucrative ketamine ventures. Whether you’re a physician looking to open a clinic in the space, or if you’re a third party lay person or entity looking to fund or manage such a practice, you need to be on the look-out for states with strict corporate
In my last post in this series, I discussed how the purchase price is structured in cannabis M&A transactions, and how escrow can be used in connection with the purchase price. Today, I want to discuss how adjustments are commonly made to the purchase price, both during the pre-closing period (between signing and closing), and
Getting to closing on a cannabis M&A transaction is always a hurdle (read about that process in detail here). There are always a lot more contingencies to closing for cannabis M&A transactions than for run-of-the-mill businesses that don’t operate in highly regulated fields (e.g., cannabis acquisitions will require approval from state and possibly local agencies).
Buying a cannabis business does not occur in a matter of days, and transactions fall apart for a variety of reasons, as we discussed in Part 1 of this blog series focused on the buy-side of a cannabis M&A transaction. In Part 2, we focused on the regulatory environment, discussing concepts that first-time buyers and their attorneys should
Earlier this week, the U.S. District Court of Colorado decided to stay (i.e. pause) a hemp lawsuit (Leago v. Ricks, No. 20-CV-03297) concerning a dispute between partners in a hemp business because of similar pending litigation in state court. The legal basis for the court’s ruling is the Colorado River abstention doctrine. We have written
For years and years, our cannabis lawyers have assisted with due diligence on all kinds of cannabis transactions from sole proprietorships to public companies. So that means we are intimately familiar with the mechanics of how the due diligence process works on a series of different transactions, and that we have seen all kinds of
