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Buyer Beware: Five Key Due Diligence Items When Buying a Cannabis Business

Canna Law Blog

As with any business, but especially a cannabis business, it is essential to know the state and local licensing/permitting requirements for acquiring, operating, and locating a license. You must also receive written confirmation from seller in the purchase agreement that the documents provided are current, valid, and everything that exists.

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Why Cannabis LLCs Need Operating Agreements

Canna Law Blog

Many entrepreneurs attempt to piece together documents on their own, but this often leads to mistakes that can cause significant legal and financial problems down the line. LLC law contains subtle legal nuancesparticularly in the highly regulated cannabis industrythat require professional insight to navigate properly.

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Intoxicating Hemp Swindle

Project CBD

A new study from an industry advocacy group in California examines the content of dozens of unregulated intoxicating “hemp” products that are easily available in the Golden State despite being banned by state law. “Each ingredient has a well-documented safety profile at the included doses.”

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File Under Bad Ideas: 50/50 Cannabis Business Ownership

Canna Law Blog

The first thing any (good) lawyer will do is ask to see all corporate governance documents of the company–things like bylaws or a shareholder agreement for a corporation or an operating agreement for an LLC. Here are the three most common scenarios: The company doesn’t have any written corporate governance documents.

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Cannabis Transactions: I ❤️ Letters of Intent

Canna Law Blog

In cannabis contract negotiations, it’s common for the parties to execute an early-stage document called a letter of intent (“LOI”). It’s very important, though, to be clear about the status of an agreement: state law varies on the enforceability of LOIs when the status is not clear.

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NM governor intervenes in court case over medical cannabis cards

The NM Political Report | Medical Cannabis Program

“Public safety considerations such as the interstate transportation of marijuana, which is a violation of federal and state law, and diversion concerns are critical state policy matters,” the court filing read.

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Cato Institute “Cannabis Banking: A Clash Between Federal and State Laws”

Cannabis Law Report

related business; Requesting from state licensing and enforcement authorities available information about the business and related parties; Developing an understanding of the normal and expected activity for the business, including the types of products to be sold and the type of customers to be served (e.g.,

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