A blog chronicling the evolution and implementation of cannabis laws in the United States
In our June 12 blog post, we reported on a potential acquisition in the cannabis industry:
As an illustration of the potential difficulties in an acquisition by a SPAC, in July 2017 it was announced that the publisher of High Times was going to be acquired by a SPAC, Origo Acquisition Corp. The merger has yet to be consummated…
Continue Reading Origo Acquisition Corporation Secures Additional Time for High Times Merger
A developing market for owners of cannabis businesses looking for a potential buyer are SPACs, special purpose acquisition companies. SPACs raise money in public offerings with the purpose of acquiring companies, usually in a specified range of industries or located in a particular geographic area. The SPACs cannot have a particular target in mind at the time of the public offering. Among some of the more recent SPACs with a cannabis industry focus, MTech Acquisition Corp. closed a public offering for $57.5 million in February 2018, and Cannabis Strategies Acquisition Corp. closed a CDN $134.75 million (approximately US $103.78 million) public offering in Canada in December 2017. This post looks at some of the issues involved that are unique to being acquired by a SPAC.
Continue Reading SPACs as an Exit Strategy for Cannabis Businesses
Transport of marijuana in states where it is legal to islands located within the state is complicated by the fact that transportation by air generally violates federal law. Rule 91.19 of the Federal Aviation Regulations (14 CFR 91.19) generally prohibits civil aircraft from knowingly transporting marijuana and other types of illicit drugs within the US. The prohibition initially…
Continue Reading FAA Rule May Permit Air Shipment of Marijuana to Islands
On August 16, in the case of United States v. McIntosh[1], the U.S. Court of Appeals for the 9th Circuit, reversed decisions from the District Court for the Northern District of California denying the appellants’ request for relief against the Department of Justice (the “DOJ”) in connection with indictments brought against them for violation of the Controlled Substances Act. The Court held that the appellants had standing to seek relief under a rider to the Consolidated Appropriations Act[2] prohibiting the DOJ from spending funds to prevent states’ implementation of their medical marijuana laws (“§ 542”).
Continue Reading Ninth Circuit Limits DOJ Prosecution of Persons Complying with State Marijuana Laws
