Cannabis Law Journal

Cannabis Law Journal

August 2020 Edition

USA: Cannabis Bankruptcy and Chapter 15

USA: Cannabis Bankruptcy and Chapter 15

Before the onset of COVID-19, the cannabis industry was facing a series of challenges: a more difficult than expected regulatory environment, disappointing sales, and a “capital crunch” as potential sources of financing narrowed. With the outbreak of the coronavirus, those challenges have only been exacerbated, despite cannabis businesses being deemed “essential business” in almost every state in which they operate. These challenges may leave less financially secure cannabis businesses insolvent.[1]

read more
Sheppard Mullin: Up in Smoke: COVID-19’s Impacts on Hemp & Cannabis M&A

Sheppard Mullin: Up in Smoke: COVID-19’s Impacts on Hemp & Cannabis M&A

It would be an understatement to say that the COVID-19 pandemic impacted transactional activity for buyers and sellers across a range of industries, the hemp and cannabis merger and acquisition (“M&A”) space being no exception.  In particular, the current period of COVID-19 volatility in the hemp and cannabis space is marked by numerous consequential outcomes, namely: (1) a sharp decline in the number of deals; (2) decline in capital raises; and (3) overall decline in market valuations.

read more
Minden Gross: New Zealand – Cannabis Around The World Series

Minden Gross: New Zealand – Cannabis Around The World Series

In two months, New Zealand will hold a referendum giving its residents the opportunity to weigh in on whether recreational use of cannabis should become legal in the country. The referendum will occur alongside New Zealand’s 2020 general election, set to take place on September 19, 2020. If more than 50% vote “yes” to legalizing recreational use of cannabis, the incoming government may introduce a Bill to Parliament that would create laws to establish a legal recreational cannabis regime.

read more
Manzuri Law: Managing Distressed Assets – Lessons Learned From MedMen, Ignite, and Acreage Holdings

Manzuri Law: Managing Distressed Assets – Lessons Learned From MedMen, Ignite, and Acreage Holdings

The global pandemic and resulting economic turmoil have caused many businesses in the cannabis industry to teeter on the edge of insolvency. Although Governor Newsom was quick to declare cannabis businesses as “essential,” many of these companies have suffered huge losses, defaulted on their loan obligations and leases, and lack the capital to pay for their local or annual licenses.

read more
A Biz In A Box: Rookie Mistake

A Biz In A Box: Rookie Mistake

We have reviewed articles in several publications that describe the Ninth Circuit’s affirmation of Decisions of the United States Tax Court rejecting as untimely filed the Petitions of Organic Cannabis Foundation (“OCF”) and Northern California Small Business Assistants (“NCSBA”).

read more