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Welcome back to “California Cannabis: Scams and Schemes of the Week.” We are publishing this series to shed light on the unscrupulousness of certain attorneys, consultants, and operators in the California cannabis industry, with the goal of establishing a more ethical and regulated industry in the state. You can find last week’s post here. Scam #1: Attorneys … Read moreCalifornia Cannabis: Scams and Schemes of the Week, Part 2

Not just yet. Two of the biggest buzzwords of 2018 have been cyrptocurrency and cannabis. Both industries have seen an tremendous influx of investment from people trying to capitalize on these new business ideas. Almost every week, I see a new event pop up for people who are interested in finding the synergies between these … Read moreCryoptocurrency and Cannabis: A Difficult Relationship

Martin Sheen? Or Cory Gardner? Either way, good news! In January 2018, Cory Gardner, Colorado’s junior senator (and Martin Sheen doppelgänger) made news by announcing that he would block Trump Administration Department of Justice appointments after Attorney General Jeff Sessions released a memo suggesting that U.S. Attorneys could consider prosecution of federal marijuana laws despite … Read moreBREAKING NEWS: Trump Makes “States Rights” Cannabis Deal, Sessions Back in Doghouse

The cannabis industry in California in 2018 is still finding its feet on many fronts – with both a regulatory framework and a banking solution being very much under construction. As these normalize, companies will establish their business metrics and get a firmer idea of the size of their opportunity, and then naturally increased M&A … Read moreCannabis Mergers and Acquisitions: Preparing for Success

Some U.S. companies are looking north for trademark protection With U.S. federal trademarks being impossible to obtain for cannabis goods and services that violate the Controlled Substances Act, my trademark clients are beginning to ask questions about their options for international trademark protection. Canada, having legalized cannabis and being our closest neighbor, is usually one … Read moreCannabis Trademarks in Canada are Attainable, Even for U.S. Companies

As of April 1, 2018, Washington marijuana processors are required to hold a special endorsement from the Washington State Department of Agriculture (WSDA) to make marijuana-infused edibles (MIEs). This requirement follows from the WSDA’s appointment to share regulatory authority over MIEs with the Washington State Liquor and Cannabis Board (LCB). The WSDA’s Food Safety Program regulates, … Read moreWashington Cannabis Processors Must Acquire Endorsement to Produce Edibles

Wage violations are often litigated, even with executive employees. Are wage and hour claims against cannabis businesses on the rise in Oregon? It appears so. Last week we highlighted a wage claim filed against CNH Labs by a former employee. That post highlighted some of the consequences cannabis employers can face when they fail to … Read moreCannabis Companies and Executive Employee Wage Claims: Batterby v. HFV Enterprises

Will Sonoma stay green? In 1996 Californians voted for the Compassionate Use Act (aka Prop 215), but more than twenty years later Californians are still fighting for their cannabis rights. One of the biggest misconceptions out there is that the entire state of California is open to cannabis businesses. Our San Francisco and Los Angeles … Read moreBreaking News: Sonoma Cannabis in Legislative Peril!

I’ve had it with the scams and schemes in the cannabis industry. I’ve never seen so much dangerously ignorant and downright criminal behavior. Since beginning work in the cannabis industry, I have yet to go a single day without encountering some sort of scam. The unscrupulousness of some attorneys, consultants, and operators in this industry … Read moreCalifornia Cannabis: Scams and Schemes of the Week

Coming to a California locale near you? As more cities begin to allow for and regulate commercial cannabis businesses, the State of California is seeing an influx of cannabis tourism. We’ve written before about the touchy relationships governments have with the idea of “cannabis lounges” (see here and here) and often questioned who will lead us … Read moreOn-Site Cannabis Consumption in California: Progress Report

When the California Bureau of Cannabis Control (BCC) first released its proposed medical cannabis regulations under the Medical Cannabis Regulation and Safety Act (MCRSA) last April it created license types for laboratories, retailers, distributors, and transporters. Most people were surprised (and worried) when they found out that the MCRSA did not create a license type … Read moreCalifornia Cannabis Delivery: Not So Fast and Furiously Difficult

Returns are due next month. Time to hustle. In California, the first Cannabis Tax Return is due on April 30, 2018 and many of our clients are now working through the issues related to the Cannabis Cultivation and Excise Tax. In addition, many marijuana businesses must file their first 2018 estimated federal tax payment by … Read moreCalifornia Cannabis Taxes and IRC Section 280E

Tomorrow and Friday, at the DoubleTree Suites by Hilton Hotel in Santa Monica, Hilary Bricken will be chairing a CLE on California Cannabis Laws and Rules, with a specific focus on SoCal’s cannabis business and regulatory scene. The event will be produced by The Seminar Group. You can see a copy of the agenda here. In addition … Read moreWant to Know More About California Cannabis Laws and Rules? Join Us Tomorrow in Santa Monica!

If only it were so easy. There is a direct correlation between the complexity of a state marijuana business licensing system and the complexity of financial deals that industry participants undertake. Washington, Oregon and most of all, California, provide fertile grounds for increasingly complex deals. Outside of cannabis, my firm sees similarly complex transactions proposed … Read moreComplex Cannabis Deals: Don’t Get Left Holding the Bag

It’s not optional for California packaging and labeling. California is just starting to get its cannabis packaging and labeling regulations right under MAUCRSA.  As part of this multi-part series on these regulations, I covered transition period product packaging and labeling in a previous post, and I analyzed the packaging and labeling for “New Products” in another post. Today’s … Read moreWhat’s On Your Label, Part 3: California Cannabis Packaging and Labeling, and Prop. 65

Equity incentives can help you motivate the team and grow fast. It’s a good time to revisit the very basics of cannabis company structuring, particularly in light of two new developments in 2018: tax reform and California state-wide legalization. Thus, this is the second article in our three-part “Reviewing Corporate Law Basics” series. The first … Read moreEmployee Equity Incentives for Your Cannabis Startup: Stock Options, Restricted Stock, RSUs, or Something Else?

Failure to pay wages can cost you — a lot. We get a lot of questions regarding how to pay employees and the consequences of failing to do so properly. With a few exceptions, if you hire someone to work for your cannabis business, you need to pay them at least minimum wage. Failure to … Read moreCannabis Companies and Wage and Hour Laws: Meek v. CNH Labs

Did San Mateo’s new ordinance moot the CEQA issue? Last month, we blogged about the writ petition brought against the County of San Mateo by petitioners who alleged non-compliance with the California Environmental Quality Act (“CEQA”). CEQA requires environmental review of discretionary projects to inform the public and government decision makers of the environmental consequences … Read moreCalifornia Cannabis Zoning: Update on the County of San Mateo Case and CEQA

Can GW Pharma get there with Epidiolex? In previous posts we’ve discussed the process for FDA approval of cannabis drugs. Today’s topic is GW Pharmaceuticals, a British biotech company focusing on prescription cannabinoid medicines, including developing and commercializing pharmaceutical products which address clear unmet needs. GW Pharmaceuticals was founded in the UK in 1998 by … Read moreGW Pharmaceuticals: A Case Study for Cannabis FDA Approval?