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 cannab…
A Message From Our Editors: Black Lives Matter
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 …
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 more […]
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Raising Money Under Rule 506
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 t…
Massachusetts’ Adult-Use Cannabis Returns Amid Uncertain Economic Forecast
On Monday, Massachusetts adult-use cannabis retailers resumed sales after two months of lockdown in response to the COVID-19 outbreak. Adult-use retailers are among the first “nonessential” businesses to return to operations under strict guidelines, pu…
The Weedmaps Subpoena: An Industry Wakeup Call
“Weedmaps”, which has been called the cannabis industry’s largest technology company, was given a fright on Halloween of last year. Weedmaps’ parent holding company, “Ghost Management Group, LLC”, received a subpoena to testify before a federal grand …
COVID-19 Stalls Pending Recreational Efforts but Spurs Long-Term Industry Optimism
Cannabis legalization and program launches have been stalled as states have turned their focus to addressing the ongoing COVID-19 crisis. As was recently discussed on the CannaBusiness Advisory, the State of New York was gearing up to become the 12th s…
Recreational Marijuana: Preliminary Injunction Denied in Suit Against MA Governor
The Massachusetts Suffolk Superior Court, in a ruling by Justice Ken Salinger on April 16, 2020, denied the plaintiffs’ plea for an emergency preliminary injunction in their suit against Massachusetts Governor Charles Baker, which sought to have recrea…
COVID-19: Risk Factor Disclosures When Raising Money in a Global Pandemic
Given the current disruptions caused by the COVID-19 global pandemic, let’s focus on an immediate challenge confronted by companies actively engaged in fundraising efforts: The adequacy of risk factor disclosures to prospective investors, especially i…
Governor Baker’s Response to Suit Regarding Recreational Marijuana Shutdown
Massachusetts Governor Charles Baker, in a response to the suit that was brought against him last week in connection with his decision to designate recreational marijuana businesses as “non-essential,” filed an “Opposition to Plaintiffs’ Motion for Pre…