By Jay Purcell, Senior Associate, Clark Neubert LLP Investors in California cannabis companies should have zero expectation of privacy. Both periodically and following certain events, major and minor investors must be disclosed to the Bureau of Cannabis Control (“BCC”). While anonymity is impossible under California law, investors can minimize disclosures by structuring investments to avoid […]
Cannabis Investments
Why Cannabis Investors Are Eyeing South America
Almost every week, an American or Canadian cannabis company announces a large overseas investment. And it’s no longer just Germany, Israel and Australia that are piquing investors’ interest. Emerging markets like Jamaica are also turning heads. The largest investment opportunities might be found in other emerging markets — especially South America for cannabis and Southeast Asia for hemp. What […]
Cannabis Investments Increase Nearly 600% Internationally
Compared to the first five weeks of 2017, this year’s investments represent nearly 600 percent growth. The cannabis industry registered US$1.23 billion in investments during January alone, according to Viridian Cannabis Deal Tracker – almost the total amount of money invested in the industry throughout 2016, which was US$1.29 billion. Compared to the first five weeks of 2017, this year’s investments represent nearly 600 percent growth. Viridian […]
Once On A High, Cannabis Stocks Are Now Getting Crushed
If you’re invested in any one of the major weed stocks listed on the Toronto Stock Exchange, the past few months must have been utterly nerve-wracking. After a sharp bull run in the in the months leading up to 2018, shares of some of the biggest licensed producers in Canada plunged in the second half […]
The Future of Marijuana Startups Is All About Exit Strategies
As more entrepreneurs and investors clamor to get into the growing marijuana industry, few people are talking about the future of marijuana startups. Specifically, what happens to startups when recreational marijuana is legalized across most states or across the entire country? What happens when big businesses go all-in on the marijuana industry? I’m talking about […]
‘Investors Are Going to Love This Industry’ – MedMen’s Chris Leavy
The cannabis industry is in a moment in time that is like nothing anyone in the industry has ever seen, according to investment guru Chris Leavy, and cannabis business owners are in the driver’s seat. Leavy, who worked as the chief investment officer of fundamental equities at BlackRock, the world’s largest money manager, jumped into […]
Marijuana Fundraising In California: What’s In Your Private Placement Memorandums?
Many of our California clients that are raising money ask us to draft or review private placement memorandums (“PPMs“) for private securities offerings in their cannabis companies and/or ancillary cannabis companies. As you would expect, investment in California cannabis businesses is at an all-time high thanks to the Medicinal and Adult Use Cannabis Regulation and Safety Act, […]
Setting Up Private Equity in the Cannabis Industry
Over the last fifteen months nearly every fifth call fielded by the Hoban Law Group involves questions about private equity: What is a private equity fund? How do I set up a private equity fund? Should I invest in a private equity fund? Is it legal to invest in a cannabis private equity fund? Private […]
Four Must-Knows of Vetting Cannabis Investments
Although the cannabis industry shows remarkable potential for market growth over the coming decades, it also faces a number of unique challenges to profitable investment. The U.S. cannabis industry is federally illegal, has a wide variety of unique state and local regulations, and also faces business challenges such as limited access to banking and 280E Tax Code […]
“Weed Speak” (or Should That Be “Cannabis Creep”?) Now a Bigger Part of Our Social Consciousness
So I had to ask myself: What’s all this then? I was standing in the beer and wine department at my local grocery store in Virginia, a state way behind in any cannabis legalization process, and noticed two beers on the shelf that were seriously using what advertisers are beginning to call “weed speak”. There […]
