cannabis loans

Top Five Cannabis Loan Issues

As we inch closer to a cannabis recession, businesses are desperately looking for new ways to stay afloat. A few years ago, our cannabis attorneys saw equity investments left and right. It seemed like everyone wanted to own a piece of a cannabis business. But as things grow more precarious for the industry as a

new Oregon cannabis rules

Reviewing the New Oregon Cannabis Rules

In November 2022, the OLCC adopted and amended a suite of cannabis rules that became effective January 1, 2023. You can download the changes here and read our previous coverage of many of these changes here, here, here, and here. Now that Oregon’s new cannabis rules are effective, let’s take a look at some of

cannabis security interests

Cannabis Security Interests: Dos and Don’ts

I previously wrote about how the cannabis industry should prepare itself for tough financial times. Capital is increasingly hard to come by unless you find yourself in a newly launched state like New York, perhaps. But once a state cannabis program is relatively mature, it’s only a matter of time before it’s a race to

safe banking act

Will the Senate Ever Do Anything with the SAFE Banking Act?

As we’ve written about over the past several years, there have been consistent rallying cries for common-sense banking reform for the cannabis industry. The SAFE Banking Act, which would allow federally regulated financial institutions to work with state-legal cannabis businesses, has been passed by the U.S. House of Representatives a whopping seven times. However, the

stock promotion scheme

SEC Targets Cannabis Industry Stock Promotion Scheme

It looks like the Securities and Exchange Commission (SEC) has its eye on the cannabis industry and specifically stock promotion schemes. Last month, the Commission announced charges against two cannabis companies and associated individuals for their involvement in “a fraudulent scheme to promote the securities.” The companies at issue are Elegance Brands Inc., Emerald Health

olcc conditional approval

Oregon Marijuana: Proposed Rule Threatens Licensee Ability to Raise Capital

This post continues our discussion of rule changes proposed by the Oregon Liquor and Cannabis Commission (OLCC). (Other posts here and here, and please stay tuned for an omnibus post by Vince Sliwoski). Today the topic is a proposed revision to the rules governing changes in business structure. In particular, a proposed conditional approval rule

cannabis lender

California Cannabis Lender License Requirements

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

cannabis business

How Cannabis Businesses Succeed

We work with many large cannabis businesses and many small ones too. It’s fun to talk up the bigger fish, but I have a soft spot for the little guys. I really enjoy small business at the end of the day. I like seeing financial statements of disciplined, privately held companies doing maybe $5m to

foreign direct investment cannabis

Four Considerations for Foreign Investors in U.S. Cannabis

Foreign investors (often in countries that prohibit cannabis) are eager to invest in burgeoning state cannabis markets in the U.S. This can often go very wrong, especially if the investor gets bad legal or tax advice. Our cannabis attorneys and our foreign direct investment team have seen these problems crop up again and again. Today,

cannabis ponzi scheme

Cannabis Ponzi Schemes

Investors in marijuana businesses face many risks. To name just a few: the subject of their investment is illegal under federal law; the businesses in which they are investing face heavy tax burdens because of IRC 280e; and the lack of access to banking services means businesses operate nearly exclusively cash, which makes tracking sales,