California Cannabis Cultivator Brings RICO Claims Against Fellow Cultivator, But Not For The Reason You Might Think
CaliforniaUncategorized July 4, 2019
In what appears to be a first, a veteran commercial cannabis cultivator in Santa Barbara County has sued another cannabis cultivator for, among many other claims, violating the federal Racketeer Influenced and Corrupt Organizations Act (RICO). According to the complaint, the defendants defrauded the plaintiff as one of many business partners, investors, and otherwise unsophisticated…
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Obviously, work in the cannabis industry for attorneys is way more than just state license acquisition. In fact, after a few years and with the exception of competitive licensing regimes, state licensing slows down and is usually taken in-house by cannabis companies that formulate compliance teams. In turn, as time goes on, a significant amount…
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Foreign Direct Investment (FDI) from China in U.S. Cannabis Businesses
CaliforniaRecreational MarijuanaUncategorized June 25, 2019
If you think your Chinese investor will be able to get your cannabis venture the promised investment funds any time soon, you are in for a long slog. Most companies do not care who provides their investment capital (as long as the investors are content being passive investors), and Chinese households have typically been lauded…
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California Cannabis Legislation: SB 475 Would (Finally) Allow Licensees to Exchange Trade Samples
CaliforniaMedical MarijuanaRecreational MarijuanaUncategorized June 25, 2019
An issue our clients have encountered in a variety of transactions, including basic product purchase transactions and intellectual property licensing transactions, is that the California rules governing commercial cannabis licensees currently do not allow the exchange of free samples between licensees. We are unaware of an industry in which the wholesale purchaser of a large…
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Brothers (and Sisters) in Farms: The Pros and Cons of Joining a California Cannabis Cultivation Cooperative
CaliforniaUncategorized June 19, 2019
Our firm’s cannabis practice group represents licensed cannabis cultivators of all sizes, ranging from the small artisanal grower to the medium/large farm with a country farmhouse to the mega farm jumbo operation. Common problems permeate cannabis cultivation operations of any size in this state: California’s cannabis taxes are high; traditional financing is unavailable; licensing and environmental…
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California Cannabis Beverages Have Even More Labeling Requirements
CaliforniaUncategorized June 15, 2019
The California Department of Public Health (“CDPH”) has, to say the least, some very strict cannabis labeling regulations. Earlier this year, I wrote about how the CDPH’s new rules were likely to create a mess in California and then how the California cannabis agencies sought to relieve some of the burdens on the industry by…
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California’s illicit market for cannabis is booming—not just out in remote grows deep in the wilderness, but also in delivery and even brick-and-mortal retail stores in big cities all over the state. Our California cannabis attorneys regularly receive questions from licensed cannabis companies about what they can do to stay competitive in the face of…
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Red Tape Alert: Phase 3 Cannabis Delivery Licensing in L.A.
CaliforniaMedical MarijuanaRecreational MarijuanaUncategorized June 10, 2019
A lot of attention has been paid recently to brick and mortar retail licenses in the City of Los Angeles for Phase 3 licensing, which is set to commence in early September of this year. While L.A. is trying its best to champion social equity with its Phase 3 storefront licensing, it’s also going to…
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California Bill to Mandate More Cannabis Stores Is Dead, For Now
CaliforniaRecreational MarijuanaUncategorized June 4, 2019
California cannabis has a problem: roughly 80% of jurisdictions in the state prohibit cannabis stores of any kind, despite voters approving full legalization with Prop 64 (the Adult Use of Marijuana Act, now the Medicinal and Adult Use Cannabis Regulation and Safety Act, or MAUCRSA) in 2016 by nearly 60%. The result has been “cannabis…
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California Cannabis: L.A. Phase 3 Social Equity Window Opens Today
CaliforniaMedical MarijuanaRecreational MarijuanaUncategorized May 29, 2019
The prelude to Phase 3 licensing in the City of L.A. is finally upon us. Today, L.A. will begin accepting applications for Phase 3 social equity applicants for retail and delivery in the City. Specifically, Phase 3 social equity applicants will have from today through July 29th to prove up their Tier 1 or Tier…
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