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
California—already famous (or infamous) as a sanctuary in the immigration area—could soon become a sanctuary for medical marijuana users. A proposed bill would protect medical marijuana users from employment discrimination. Continue Reading Into the Weeds: Will California Employment Law Protect Medical Marijuana Users?
Seyfarth Synopsis: Marijuana businesses must properly label their products if they contain chemicals that can cause cancer, birth defects, or other reproductive health problems. Failure to do so will result in a civil penalty or civil lawsuit.
Entrepreneurial Plaintiff’s attorneys have now set their sites on marijuana businesses. Since January 1, 2017, Plaintiff’s firms have issued approximately 800 violation notice letters to marijuana businesses alleging that producers of cannabis infused edibles and vape cartridge manufacturers failed to warn consumers about specific fungicides and pesticides associated with their products.
California’s Proposition 65, or the Safe Drinking Water and Toxic Enforcement Act of 1986, requires cannabis business owners to provide customers with warning of the chemicals contained in their products which can cause cancer, birth defects, and other health problems. Among the substances “known to the state of California” to cause cancer, birth defects and other health problems are marijuana smoke itself, and the chemicals myclobutanil (also a fungicide), carbaryl, and malathion, commonly-used pesticides. Continue Reading Beware: Marijuana Businesses Targeted With Product Labeling Violation Letters
We could not let 4/20, National Weed Day, pass without a post, so here is an article from the Associated Press on the history and origins of the “holiday.”