Part 1 of this series discussed the lack of bankruptcy protections for cannabis companies since bankruptcy in the U.S. is an exclusively federal procedure and cannabis remains illegal under federal law and proposed a number of alternative options for businesses struggling in the current environment. Part 2 of this series focused on state law receiverships for several states.  

In the third and final part of this series, we continue to review state law receiverships for several additional states and discuss the final non-bankruptcy option for cannabis companies, an assignment for the benefit of creditors.

Continue Reading Alternatives to Bankruptcy for Cannabis Companies (Part 3)

Part 1 of this series discussed the lack of bankruptcy protections for cannabis companies since bankruptcy in the U.S. is an exclusively federal procedure and cannabis remains illegal under federal law and proposed a number of alternative options for businesses struggling in the current environment. Part 2 of this series focuses on one of these alternatives: state law receiverships.

Continue Reading Alternatives to Bankruptcy for Cannabis Companies (Part 2)

Mastercard sent cease and desist letters to payment processors and banks last week. These letters demanded certain financial service providers to stop allowing marijuana transactions on MasterCard debit cards.

What does this mean?

This is clearly just another body blow to a struggling industry. Obviously cannabis operators will likely deal with more cash but I anticipate more financial service providers to push Bitcoin and digital wallets (which has its own challenges and complexities). Unfortunately, there is no great fix to this issue unless the federal government is willing to pass legislation to help the industry. Spoiler alert – it is not willing to pass any helpful legislation.

Contact us

If you have questions, please contact Steve Levine, or your Husch Blackwell attorney.

Our Cannabis team is tracking news in the industry and will continue to share developments that affect our clients’ businesses. Subscribe to our Cannabis Law Now blog for up-to-date information. We’ll keep you connected!

The problems facing the cannabis industry arising from its ongoing status as a federally illegal enterprise are numerous and well documented: 280E tax burdens, limited access to banking, exclusion from capital markets, uneven access to federal intellectual property right protections, and the inability to access the stream of interstate commerce. The recent woes faced by cannabis companies operating in mature markets reveal another key legal hurdle for cannabis companies, their investors, and their creditors: the inability to access federal bankruptcy protection. However, cannabis companies may have access to a number of contractual and state law remedies to deal with insolvency and other financial woes.

Continue Reading Alternatives to Bankruptcy for Cannabis Companies (Part 1)

On May 3, 2023, the federal Trademark Trial and Appeal Board (the “TTAB”)—the entity responsible for handling disputes over the issuance of trademarks on a nationwide level—issued a precedential opinion in In re National Concessions Group, Inc. that has significant implications for cannabis companies seeking federal trademark protection.

Continue Reading Federal Trademark Decision Impacts Cannabis Industry

Earlier this week, members of the U.S. House of Representatives and U.S. Senate reintroduced legislation that would allow regulated financial institutions to work with state-licensed cannabis companies. The Secure and Fair Enforcement (SAFE) Banking Act of 2023 would disallow federal banking authorities from prohibiting, penalizing, or discouraging banks from providing financial services to state-licensed cannabis businesses and their networks of counterparties, advisors, and vendors.

Continue Reading Legislators Make Another Run at Cannabis Banking Law

Creating further confusion and uncertainty in the hemp derived cannabidiol (CBD) markets, the FDA has determined that the existing regulatory frameworks for food and supplements are not appropriate for CBD. The FDA cited various safety concerns as the impetuous in making this determination.

“FDA has concluded that a new regulatory pathway for CBD is needed that balances individuals’ desire for access to CBD products with the regulatory oversight needed to manage risks. The agency is prepared to work with Congress on this matter.”

What does this mean to you?

Clearly the FDA has raised several safety concerns that should concern the industry. The unwillingness to regulate by the FDA also creates further consternation for the hemp industry, as the lack of long term parameters for the industry makes creating successful, long term businesses extremely challenging. Clearly the opportunity for market participants remains in the short to mid term.

Contact us

If you have questions, please contact Steve Levine, or your Husch Blackwell attorney.

Our Cannabis team is tracking news in the industry and will continue to share developments that affect our clients’ businesses. Subscribe to our Cannabis Law Now blog for up-to-date information. We’ll keep you connected!

The voters of Missouri have spoken. During the 2022 Midterm Election, voters passed Amendment 3—a ballot measure legalizing the possession, use, and sale of marijuana to adults 21 years of age or older in the Show-Me-State. Among other things, Amendment 3 includes important information that every Missouri employer should know before the December 8, 2022, effective date. 

Continue Reading Missouri Joins Growing List of States Legalizing the Adult Use of Recreational Marijuana: What This Means for Missouri Employers

The 2022 Midterm Election revealed a mixed bag of results regarding the legalization of adult use (recreational) marijuana: voters in Maryland and Missouri approved adult-use legalization measures whereas voters in Arkansas, North Dakota, and South Dakota rejected similar legalization efforts.

Continue Reading 2022 Midterm Election Results: A Mixed Bag for Marijuana

The United States’ retail cannabis industry continues exploding, and it doesn’t show any signs of slowing down. These numbers are guaranteed to change after this Tuesday’s election, but as of October 2022, 37 states have legalized some form of medical cannabis, and 19 have legalized the substance for recreational use. Now, only 3 states remain with no cannabis access laws on the books. Retail cannabis sales in the U.S. are projected to exceed $33 billion by the end of 2022. As the industry continues to boom, retail landlords have increased opportunities to diversify their retail spaces by leasing to cannabis tenants. However, with these new opportunities come unique challenges and important considerations landlords should address as they prepare to lease to tenants in this new sector of the market.

Continue Reading So You Want to Rent To A Cannabis Tenant? Nine Considerations for Retail Landlords