What it Takes to Win Licenses, Cannabis Licensing in Newly Regulated States with Jason Klein and Avis Bulbulyan
Licensing has come a long way since a few intrepid states began issuing permits to grow, process and dispense cannabis. In the early days, competition for these valued licenses was sparse, the applications were simple, and the submissions were unsophisticated. Today In 2020, the pathway to winning a coveted medical or recreational license through the application process is far more complicated and challenging. Understanding the key differences between the types of licenses, markets, and processes is the first key to properly aligning your goals and resources with the right opportunity. Please join Avis Bulbulyan, CEO of SIVA Enterprises, for a discussion of how licenses can fit within your business model, the primary mistakes that most failed applicants make, and the foundational work that can set your application apart!
About Avis Bulbulyan
Avis Bulbulyan is the Chief Executive Officer of SIVA Enterprises, a cannabis business development and solutions firm that provides full-service consulting, state license application support, venture opportunities, and licensing to entrepreneurs across the United States. Avis is in his 3rd year serving as a member of the Cannabis Advisory Committee of the California Bureau of Cannabis Control, which advises the BCC and two other California agencies on the development of cannabis regulations in the state. He previously served as the President of the Los Angeles Cannabis Task Force and the Education Chair for Cannabis LAB (Legal, Account & Business). As one of the industry’s leading cannabis business authorities, Avis is a highly sought-after speaker and a valued expert resource for many national news sources and publications. Avis oversees corporate direction, business development and strategy at SIVA, facilitating company activity in consulting, alliances and channels, marketing, investments and operations.
How to Identify Smart Money for your Cannabis Business with Jason Klein and Steve Ham
Money might be fungible, but smart money is most definitely not. Learn the critical differences between these two as we are joined by Steve Ham, Partner at Altmore Capital, an experienced large-scale cannabis sector investor.
This webinar will touch on topics such as the general lack of availability of traditional sources of capital, the ongoing capital crunch and some recent market benchmarks, challenges and limitations of self-funding, what to look for in a financial partner, how to make yourself an attractive lending target, and effective use of proceeds and leveraging.
In line with the new format, this webinar will feature an on-camera, incisive conversation with your host, Jason Klein, and offer an opportunity to have your questions answered by one of the most dynamic and accomplished private equity investor in the cannabis capital space.
About Steve Ham
Steve Ham is an accomplished private equity investor and senior executive with over 20 years of experience across private equity, technology & venture capital. Prior to Altmore Capital, he was with The Carlyle Group, RedZone Capital, Sterling Partners, Thomas Weisel and Salomon Brothers. He has invested and exited over $3 billion in transactions. His expertise includes private equity, M&A, investment analysis, capital raising, capital allocation, FP&A, contract negotiations, and strategic planning. Steve graduated from the University of Illinois. He can be reached at [email protected]
Keeping Your Cannabis Business Safe: A Special Q&A Session with Cybersecurity Expert Michelle Drolet
The threats are real and increasing daily. Learn how you can protect yourself and your cannabis company from unauthorized access to confidential files and proprietary data. Join Towerwall’s CEO Michelle Drolet on July 10th at 12 Noon EST to learn the latest in securing your company’s critical data. The stakes of a breach are getting higher and you cannot afford to wait any longer. Don’t miss this unique opportunity to engage with our resident information security expert who will answer your questions and address the challenges you face every day. Michelle will cover the topics below but the platform is yours! 1. What I know about COVID-19 Scams 2. How to secure your network for a remote workforce 3. Planning for a crisis: what are the basic steps for building an incident response & disaster recovery plan? 4. Implementing a repeatable and actionable information security plan with people, process and technology to maintain compliance and adherence to regulations. Join Offit Kurman’s Cannabis Practice lead and Cannabusiness Key host Jason Klein and Michelle for an interactive session that will help you protect your business from cyber threats. Remember, data security compliance is a necessity to conduct your Cannabis business.
Meet the Speaker:
Michelle Drolet, is the founder of Towerwall, a woman-owned cybersecurity and cannabis compliance services provider in Framingham, Mass., with clients such as CannaCare, Smith & Wesson, Covenant Healthcare and many mid-size organizations. Michelle is also regular contributor to Cannabis Business Executive.
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Important Announcement:
Offit Kurman, Cannabis Business Executive & CohnReznick has been rescheduled to Friday, May, 1, 2020 from 12:00-1:00 PM. Please register to attend and thank you for your patience.
KEY FINANCE AND TAX ISSUES CANNABIS COMPANIES SHOULD FOCUS ON AS THEY GROW
The world has changed dramatically. The cannabis industry is not immune to the effects of the covid-19 pandemic. However, there is good news. Cannabis dispensaries have been deemed essential business and allowed to continue operations across the country. Operators have proven themselves to be very innovative and regulators have reacted quickly to this new normal. At some point the pandemic will pass and companies that focus on business fundamentals will be best positioned to emerge successfully. As the industry and markets mature, sophisticated operators are pivoting to focus on efficiency, organization and professionalization of their management team.
CohnReznick’s Michael Harlow and Jason Klein of Offit Kurman will tackle some of the tax and finance issues that arise for these companies, including:
- Fixed Asset Accounting: Acquisition and build-out of cultivation facilities represents the largest single expenditure for most operators. Unlike other manufacturing companies, cannabis companies do not qualify for bonus depreciation, which significantly increases taxable income. How can operators maximize depreciation of production assets and qualified cost of goods sold deduction with proper accounting and record keeping?
- Convertible Debt Instruments: More investment funds are coming on-line offering debt to the industry, often with equity conversion options. We will discuss the finance and tax impact of these financing deals.
- Brand/Royalty Agreements: Cannabis companies are turning to branding and royalty agreements as a way to expand into new markets without having to secure new state licenses. Non-plant touching companies are also creating cannabis brands without securing state licenses dramatically reducing their regulatory burden and cost of capital related to building production facilities and holding inventory. Hear about ways to structure these deals to maximize success.
- CARES ACT Update: Federal and State governments have responded with a variety programs aimed at minimizing the financial impact of the pandemic. Cannabis companies have been barred from participating in the Payroll Protection Program, despite being deemed essential by state governments. However, other programs do offer limited relief.
MEET THE SPEAKER
Bio
Michael Harlow is a partner and the Co-Practice Director for the DC Metro Tax Practice for CohnReznick. As such, Michael enjoys working with a variety of clients across the Washington region. He has more than 15 years of experience in public accounting serving clients in attestation, accounting, and tax advisory roles Michael has extensive experience across multiple real estate-related industries including homebuilding, land development, residential management, commercial management, and land engineering.
For the past three years Michael has focused his efforts on growing the tax services of the CohnReznick Cannabis Practice. The CohnReznickCannabis Practice services clients across the country in legal adult use and medical markets. He is a Certified Public Accountant in the state of Maryland.
After the most successful year for advancing cannabis issues on Capitol Hill, questions remain as to whether the momentum will carry over into the new year or if progress at the federal level will take a step backward in 2020. Join Michael Correia, Director of Government Relations for The National Cannabis Industry Association, as he reviews what you can expect from Congress and the federal government this year regarding the issues critical to marijuana and hemp operators and the investment community in the U.S. and abroad. Tune in to hear from the person who focuses on raising awareness and building support for the cannabis industry’s issues with lawmakers every day.
Meet The Speaker:
Michael Correia, National Cannabis Industry Association. His focus is raising awareness and building support for the cannabis industry’s issues on Capitol Hill. In addition, Michael works with other national organizations to increase the cannabis industry profile nationally. Prior to joining NCIA, Michael spent many years working on Capitol Hill, including working for Rep. George Radanovich (R-CA), who retired in 2010, and the House Committee on Resources, serving three different Chairmen. Previously, he was director of federal affairs for the American Legislative Exchange Council (ALEC) and senior project manager for the Committee for Responsible Federal Budget. In both positions, he advocated for policies in Congress. A campaign veteran, he has worked and volunteered on numerous political campaigns at the local, state, and federal levels over the past two decades. Michael is a graduate of the University of California, San Diego. A native of San Diego, he resides in Washington, D.C.
The passage of the 2018 Farm Bill and legalization of hemp has opened up many exciting business opportunities for its producers. In this webinar, we’ll discuss how producers can protect their competitive position in the market through the strategic procurement of intellectual property assets. We will explain the three major categories of IP protections for newly “invented” plants – Plant Variety Protection Certificates, Plant Patents and Utility Patents – and explain some of the key considerations that go into deciding the right path for your business.
Meet the Speaker
Scott Lloyd counsels emerging and midsize businesses on a wide array of legal issues in the areas of corporate governance, intellectual property, commercial transactions and dispute resolution, regulatory compliance and international trade. Mr. Lloyd is also a registered patent attorney who combines his scientific and professional experience to focus his practice on serving the needs of clients requiring an attorney with both legal and scientific expertise to address intellectual property and regulatory support needs. He counsels those companies on intellectual property strategy, assists them in gaining regulatory approvals for products and provides advice on compliance with international import and export regulations. Mr. Lloyd works primarily with small and midsize business owners seeking to implement growth strategies and succession plans.
As CEO of Jabez Pharma Holdings, Inc. Steve Beagle addresses the topic of real investigative science going on in both the regulated and non-regulated areas of cannabinoid science. The continued loosening of restrictions from the FDA, in particular, presents some exciting opportunities to do research science on cannabinoids in humans, but at the same time, ongoing uncertainty and delays present major obstacles to broader market acceptance and expansion. Mr. Beagle will be explaining the current state of cannabinoid science and shedding light on the challenges that drug development companies face as they attempt to navigate this highly dynamic space and formulate drug dosages for the Rx, OTC and nutraceutical markets.
About Steven Beagle | CEO, Jabez Pharma, Inc. Steven Beagle has held senior positions in the pharmaceutical sector for over thirty years. Prior to founding Jabez Pharma in the summer of 2018 he was Senior Director of MSN Pharmaceuticals from 2013-2017 where he headed North American marketing and sales of their API division. He has been credited for the exponential US growth that has now emerged from his work during that time period. Prior to this role, Steve headed publicly-traded Dr. Reddy’s CPS custom chemistry business from 2011 to 2013. Mr. Beagle possesses extensive experience in the pharmaceutical industry, holding key roles not only at MSN and Dr. Reddy’s but also at DSM, BASF, Rohner AG, American Cyanamid and Hovione. He holds a BS from the University of Connecticut and also studied at the Arnold and Marie Schwartz (Brooklyn) College of Pharmacy.
Big changes are finally on the horizon for hemp in the United States. On Tuesday, October 29th the United States Department of Agriculture (“USDA”) dropped its interim hemp rules pursuant to the Agriculture Improvement Act of 2018 (commonly known as the 2018 Farm Bill). The 161 pages of interim rules set up a regulatory system for federal government oversight and licensing of hemp farmers across the country. Importantly though, state and tribal law remains hugely relevant in that states and Indian tribes need to submit cultivation plans to the USDA for the agency’s approval, and those plans will also govern the regulatory conduct of hemp farmers. What does this mean? It means that hemp farmers are going to face a bevy of regulations and compliance issues and protocol on the state, tribal, and federal levels in a way they haven’t had to before even under 2014 Farm Bill pilot programs.
To better inform and educate our clients, readers of this blog, and those interested in hemp cultivation and/or production of hemp products, including hemp-CBD, we’ll be hosting a free webinar on Thursday, November 14, 2019 from noon PT to 1 p.m. PT. Join Nathalie Bougenies and Daniel Shortt, who will discuss and analyze the following topics:
- Highlights of the USDA interim hemp regulations including testing, interstate transport, and federal licensing;
- Immediate legal impacts on hemp farmers;
- Ambiguities in the regulations and areas of concern;
- Steps for hemp farmers to take now to best prepare for compliance with the interim rules once they’re finalized; and
- The effect of the USDA regulations on hemp-CBD and hemp-derived products.
Nathalie and Daniel will also take audience questions throughout the presentation.
Even though the interim rules are not yet final, it’s hugely important for stakeholders to get a firm grasp on their meaning and consequence now in order to be better prepared for the future of what the USDA and states and tribes will impose upon hemp farmers and producers. We sincerely hope you can join us on November 14th!
Due to the vape crisis sweeping our nation, the world is finally paying attention to the extensive quality and safety issues that have arisen with the rapid growth of the legal cannabis industry. This session will explore how a lack of federal oversight, an absence of uniform state regulations, a heavy reliance on testing, significant taxation, and specific industry behaviors contributed to the situation. This will be followed by a discussion on how the implementation of comprehensive cannabis-specific good manufacturing practices and standards could have prevented the situation and what businesses can do now to avoid further damage.
This webinar is presented by Lezli Engelking, Founder, FOCUS: The International Cannabis Health & Safety Organization
Lezli brought her 20-plus years of experience in the mental health and pharmaceutical industries to the cannabis industry to open the first chain of medical cannabis operations in Phoenix, AZ. Having gained a comprehensive understanding of the extensive quality and safety issues surrounding cannabis, in 2014 Lezli sold all financial interest in the industry to found FOCUS: The International Cannabis Health & Safety Organization. FOCUS is an independent, 501c3 non-profit organization that develops cannabis specific standards and provides third-party accredited certification and related services to the public and private sectors globally.
Meet the Speaker:
Lezli brought her 20-plus years of experience in the mental health and pharmaceutical industries to the cannabis industry to open the first chain of medical cannabis operations in Phoenix, AZ. Having gained a comprehensive understanding of the extensive quality and safety issues surrounding cannabis, in 2014 Lezli sold all financial interest in the industry to found FOCUS: The International Cannabis Health & Safety Organization. FOCUS is an independent, 501c3 non-profit organization that develops cannabis specific standards and provides third-party accredited certification and related services to the public and private sectors globally.
