The business of cannabis[CD1] is complicated, compounded by the fluid and evolving nature of the field and the multiple levels of applicable regulation. Failing to understand the laws and regulation of any industry can carry hefty consequences, but that is especially true in this highly-regulated and emerging landscape. This three-part Cannabis Law Module will focus on the special considerations that lawyers need to take into account when advising a cannabis business or a client that wishes to make their start in cannabis.
First, Business Law: Formation 101 provides an introduction into the basic tenets of cannabis business formation and the special considerations that lawyers must address in this industry. Moderator and attorney Megan Sheehan guides a trio of some of the longest-standing business law practitioners in cannabis and current and former INCBA Board Members Karen Bernstein (New York, Bernstein IP), Rachel Gillette (Colorado, Greenspoon Marder), and Lara DeCaro (California, Leland, Parachini, Steinberg, Matzger & Melnick LLP) through fundamental considerations in cannabis business formation. Each expert brings their years of experience in the cannabis industry to this panel to address key considerations in the formation of cannabis business entities, including due diligence, structures, key formation documents, intellectual property considerations, and tax (280-E) considerations. Participants will learn from the top lawyers in the industry how to solve issues before clients’ even become aware of the minefield you are helping them navigate.
Next, Business Law Formation 201 focuses on drafting the internal documentation required by business entities in the cannabis industry. Operating agreements, bylaws, equity incentives, simple fundraising agreements, and agreements related to equity programs all require special attention to both state and federal cannabis considerations. Perhaps most importantly, growth, continued fundraising and exits all require attention and a comprehensive drafting strategy on the front end to make sure your clients avoid costly and time consuming fixes later in the life of the business. Our second hour, Business Law: Formation 201; Drafting is moderated by Stephan Ferris and features guidance from attorneys Sahar Ayinehsazian (Colorado, Vicente Sederberg) and Mitzi Vaughn (Washington, Karr Tuttle), both of whom specialize in advising companies in the cannabis industry[CD2] .
The hour webinar in the Law Module, Business Law Formation 301, will focus on litigation, and what happens when things don’t quite go as planned and the documents don’t provide the solutions they should. From minority/majority shareholder disputes to breach of fiduciary duties and others, young cannabis companies are often doomed by ownership, control, employment, and succession issues. Led by moderator Sarah Lee Gossett Parrish (Oklahoma, SLGP Law), cannabis business attorneys Dean Richardson (California, Wilson Elser), Katherine Bierwas (Massechuttes, Law Office of Katherine Bierwas), and Phillip Neiman (California, JAMS Arbitrator) will finish up this Cannabis Law Module by covering the special considerations lawyers should take in evaluating a cannabis company litigation, unique considerations for cannabis-industry litigation, alternative dispute resolution, and settlement considerations.
The Business Law: Formation Cannabis Law Module will provide expert analysis and essential information for those who are either interested in, or currently engaged in, advising cannabis industry clients on the best ways to start their new venture on the right foot.
