The legalization of recreational cannabis in 2018 opened the doors for Canada to be a first-mover in what analysts predicted would be an exciting and lucrative industry. Although the cannabis industry has experienced significant business growth, recent headwinds have resulted in some cannabis companies starting to encounter short-term liquidity challenges as they grow their operations.
Faced with such challenges, licensed cannabis producers need to be mindful of restructuring issues and challenges, especially since the legislative environment, at both the federal and provincial levels, is new territory for business people and their professional advisors.
The legal and regulatory landscape varies across the provinces, which can be of particular concern to companies operating in multiple jurisdictions. The federal government, through Health Canada, controls licensing throughout the country. However, the individual provinces control the distribution of cannabis within their respective region and the applicable provincial laws differ considerably throughout the country.
This legislative complexity compounds when the fragmented cannabis regulations intersect with the federal insolvency legislation. The value and method by which the assets of a cannabis business may be realized can vary considerably, from one region to the next. [Read More @ Denton’s]
Your email address will not be published. Required fields are marked *
Name *
Email *
Website
Save my name, email, and website in this browser for the next time I comment.
Comment *
Notify me of follow-up comments by email.
Notify me of new posts by email.
Δ
Big Island Grown (BIG) is a vertically integrated cannabis company based in Kailua-Kona, Hawaii County, on the Big Island of Hawaii, whose reach now extends to several islands in the…
There are three primary ways that brands can use social media platforms for marketing: organic posts, shared posts, and paid posts. With paid posts still off limits to most businesses…
By Aaron Pelley, Attorney at Harris Sliwoski Despite continuously surpassing every other state with recreational cannabis in terms of total retail sales, California’s cannabis industry has faced continuous and far-reaching…
The difference between medicinal and recreational marijuana has always been arbitrary. For example, after legalizing recreational cannabis, California initially required each cultivated seedling to be designated by growers as either…