Changes to the Accredited Investor Definition – cannabusiness advisory

Marijuana-related businesses (“MRBs”) planning to raise money in private offerings should be aware of recent changes to the “accredited investor” definition under the Securities Act of 1933, as amended (“Securities Act”). The U.S. Securities and Exchange Commission (“SEC”) recently adopted a final rule (the “Final Rule”) amending Rule 501(a) of Regulation D promulgated...

Four Years Later and Maine is Poised to Finally Launch the Sale of Adult-Use Cannabis in October – cannabusiness advisory

After having been indefinitely postponed in April 2020 due to the COVID-19 pandemic and nearly four years after Maine residents voted to legalize adult-use recreational cannabis, Maine is set to launch the long-awaited retail sale of adult-use recreational cannabis this coming October. While voters passed a ballot measure in 2016 to...

Various Approaches to Social Equity – cannabusiness advisory

Since the era of cannabis legalization commenced, stakeholders, regulators, and ordinary citizens alike have been concerned about the lack of social equity and diversity in the cannabis industry.  Even prior to the modern era of legalization, the inextricable relationship between race, enforcement, and the origins of prohibition has served as a troubling reminder...

Recent OCIE Risk Alert Demonstrates SEC’s Continued Focus on Private Fund Advisers – cannabusiness advisory

The staff (the “Staff”) of the Securities and Exchange Commission’s Office of Compliance Inspections and Examinations (“OCIE”) recently issued a Risk Alert focused on certain key compliance issues for registered investment advisers that manage private equity funds or hedge funds (collectively, “private fund advisers”). OCIE’s Risk Alert highlights certain common deficiencies the Staff...

Lighting Up Lobbying for Cannabis Companies – cannabusiness advisory

With recent COVID 19-related mandates, such as the shelter-in-place orders or social distancing requirements, many businesses and cannabis companies have reached out to the governor’s office or other state and local officials with attempts to influence relief legislation or to request an industry-wide exception to a regulation. Did you know these types of...

City of Corona, CA Cannabis Regulations – Regulatory Map Now Available!

The city of Corona, CA is in the process of developing an ordinance that, if passed, will allow for cannabis retail, delivery, manufacturing, distribution, and testing labs within the city’s manufacturing zones.This is a huge opportunity to learn the Corona, CA cannabis regulations and prepare for the new rules to be confirmed. Learn...

Increasing Lawsuits Against Cannabis-Related Businesses Places Spotlight on Adequacy of Disclosures – cannabusiness advisory

Class action lawsuits against publicly traded cannabis-related companies more than doubled from 2018 to 2019, with 13 class action cases filed in 2019 compared to 6 class action cases filed in 2018 – a staggering 116% increase. Lawsuits against cannabis-related businesses continue to grow concurrently with the expanding industry growth and mostly focus...

Black Lives Matter – cannabusiness advisory

On May 25, 2020, George Floyd, a black American, lost his life to police brutality. The senseless killing of Mr. Floyd at the hands of police, while he was being arrested for a nonviolent crime, was a racist act. For nearly nine minutes, the arresting officer knelt on Mr. Floyd’s neck and ignored...

Cannabis Business Valuations: How to Value a Dispensary, Startup, or Other Canna Brand

Cannabis business valuations are an important area of expertise for entrepreneurs to understand at any time during their business ownership, but most importantly at the beginning!While the methods of determining a valuation may not vary too much, what you do as a business owner can make a big difference along the way. Read...

Raising Money Under Rule 506 – cannabusiness advisory

Private companies raising money in private offerings of securities often rely upon an exemption under Rule 506 of Regulation D.  In fact, Rule 506 is undoubtedly the most popular safe harbor from the registration requirements under Section 4(a)(2) of the Securities Act of 1933. This is due in no small part because an...
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