Cannabis and Corporate Law: Solving Problems in Entity Formation and Jurisdiction, Investment, Contracting
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
- work Practice Area
Corporate Law
- event Date
Thursday, December 15, 2022
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE course will address specific issues which every corporate attorney should know when representing companies doing business in and with the cannabis industry. When a product, once illegal and scorned, becomes a significant market segment seemingly overnight, counsel cannot rely on instinct and must instead know each area of concern in an environment of laws that conflict from state to state and then clash with federal law as well.
Mr. Gay has more than 30 years of experience as a business/corporate lawyer, culminating in his present transaction-focused practice, which includes corporate law, entity formation, mergers and acquisitions, corporate finance, licensing agreements and technology transfers. He has extensive experience working with domestic and foreign clients in securities, real estate, intellectual property and franchising. Among Mr. Gay's many domestic and international clients are Japanese entities that operate in the United States.
Ms. Hodges is a partner in the Real Estate, Land Use and Natural Resources Practice Group in the firm's San Diego office. She is the leader of the firm’s Cannabis Industry Team and serves on the firm's Pro Bono, Recruiting and Diversity & Inclusion committees, as well as numerous industry specific teams.
The market for legal advice regarding cannabis products challenges even the most seasoned corporate lawyer. Saying "the rules have changed" is an understatement. This product was formerly illegal across the U.S.; legal cannabis is now approaching nationwide status. Legality and uniformity are two different things. Each state's form of legalization varies somewhat. Moreover, federal law remains unchanged and therefore contradicts state law.
In this uncertain environment, corporate counsel cannot rely upon instinct to advise clients. Simple decisions, such as "where to incorporate," are now driven by a new factor: the form of legalization. Further, as cannabis businesses cross state borders, questions arise. Counsel must decide whether they have to register in other states and how their line of business--which may be legal in one state and not another--can register without creating legal exposure.
Conversely, whether and how to do business with a cannabis company is also jurisdictionally driven. Counsel must determine whether a company in a state that has not legalized cannabis can accept funds from a cannabis company. Banks are grappling with whether to receive funds from cannabis businesses. Clients may worry that if federal authorities press the legality issue, they may have to forfeit payments from these companies.
Listen as our panel of cannabis law experts provides the necessary details to represent clients inside and on the periphery of the cannabis industry and identifies the issues of which corporate counsel must be conversant.
- Exploration of legality
- Federal vs. state
- State vs. state
- Formation considerations
- Choice of entity
- Choice of jurisdiction
- Operational issues
- Permitted activities
- Contracting
- Soliciting/receiving investments
- Banking and finance
- Tax issues
- Doing business with cannabis companies
The panel will review these and other essential matters:
- What is the scope of legalization and the differences between various jurisdictions?
- What considerations are there in forming a cannabis-related business?
- What considerations are there in operating a cannabis-related business?
- What considerations are there in doing business with a cannabis-related company?
