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Cannabis

As entrepreneurship drives the cannabis industry, a passion for helping entrepreneurs drives us at Much. We find ways to say yes. No matter your role in the cannabis space, our lawyers are here to help you succeed.

Cannabis

At the heart of Much’s practice is respect for entrepreneurs who are starting, growing, and selling businesses. Legal cannabis sales in the U.S. hit $17.5 billion in 2020, with about a third of U.S. states allowing recreational use and more than half allowing medical use. Most entrants into the cannabis arena are entrepreneurs hoping to capitalize on this exploding growth despite the industry’s many challenges.

End-to-end legal and business support.

In 2014, Much attorneys committed themselves to business owners, growers, and investors who were establishing themselves in the cannabis industry, which, like most, is multidisciplinary. Real estate, tax, employment, intellectual property, litigation: Cannabis businesses require legal guidance in all of these areas and more. In addition, we’re here to assist with the special requirements of a cannabis business, such as non-bank financing, licensure in multiple jurisdictions, and layers of complex regulatory compliance. We pride ourselves on having both the capabilities and the drive to offer full-service representation to cannabis industry participants.

The legal needs of companies in any segment of the cannabis industry vary, depending on the business’s proximity to the actual cannabis product. As a true full-service law firm, Much lawyers regularly assist direct, indirect, and even distant participants in the industry with these and other services:

  • Debt and equity financing and private equity representation
  • Business counseling and structuring
  • Government licensure and certification, accreditation surveys, and regulatory compliance
  • Federal, state, and local law enforcement inquiries and investigations
  • Federal and state income and sales tax reporting
  • Government relations and lobbying
  • Intellectual property prosecution and protection, including patents, copyrights, and trademarks
  • Labor and employment issues
  • Marketing strategy and media relations counseling
  • Municipal law, real estate transactions, and zoning compliance

Trending & Horizon Issues

What lies ahead for the cannabis industry depends largely on its legalization at the federal level. Once that happens …

  • Companies going public: Today, cannabis businesses looking for financing through a public offering must turn to the Canadian stock exchange. That could change, and the U.S. stock exchanges could become options. Even though the 117th Congress recently passed it, there appears to be little chance that H.R. 3617, the Marijuana Opportunity Reinvestment and Expungement Act, will become law anytime soon.
  • Opening the banking system: Cannabis companies today do not have access to traditional financing and even depositor relationships in the majority of U.S. banks. Community banks across the U.S. have made themselves more available and have gained a foothold – and loyalty – among cannabis sector clients.
  • An increase in competition: An open marketplace means competition will flourish, although we expect there will be continued consolidation, with the bigger companies becoming the most successful, and smaller ones seeking opportunities to be acquired. With Much’s leading private equity and M&A practices, we are in the midst of evaluating acquisition options for well-established players as well as counseling company executives seeking to exit. We predict that cannabis M&A activity will boom.
  • Regulation will increase: Over time, the regulated marketplace will grow much larger than the black market. Already heavily regulated in states where cannabis sales are legal, additional federal, state, and local regulations will increase. This level of government oversight and compliance is time-consuming and expensive to manage. Much attorneys can advise you on ways to make it less burdensome.

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