Denver Overhauls Its Cannabis Rules: Week in Review

It’s good to remind ourselves that we’re in the early days of the legal cannabis space.

It’s a good example of local legislators working diligently to fine-tune regulations in a city that was on the vanguard of legal cannabis seven years ago—a lifetime ago in our concept of time.

TORONTO, April 28, 2021 is pleased to announce that its new subsidiary, RWB Florida LLC, has completed the acquisition of all of the issued and outstanding shares of Acreage Florida Inc.

The deal also includes the sale of property in Sanderson, Florida that includes more than 15 acres of land, an approximately 11,000-square-foot facility for cultivation and a 4,000-square-foot freestanding administrative office building.

“The Florida cannabis market is poised for tremendous growth and is forecasted to be a top-five state by the year 2025,” Red White & Bloom CEO Brad Rogers said.

Jim Frasier, formerly of Acreage, has been appointed the position of Florida general manager for Red White & Bloom.

RWB, RWB Florida and High Street Capital entered into a definitive stock purchase agreement on Feb.

UNITED KINGDOM, April 20, 2021 – PRESS RELEASE – A groundbreaking paper, released April 20, has revealed the outdated laws and regulations currently hindering the U.K.’s cannabidiol  and medicinal cannabis industries.

Not only would the emergence of a domestic cannabis sector help stimulate the U.K.

In November 2018, the government announced medical cannabis could be prescribed for patients by specialist doctors, but so far just three National Health Service prescriptions and 6,000 private prescriptions have been issued.

Written by Maple Tree Consultants and Mackrell.Solicitors, the discussion paper is supported by 16 industry heavyweights including Prohibition Partners and the Primary Care Cannabis Network.

is a world leader with a global reputation in pharmaceuticals, so there is a strong argument that if we were able to both develop and export more cannabis-based medicines, we could continue to be a global heavyweight and increase our market share even further.

“The current regulatory landscape for medicinal cannabis is fraught with problems,” said Ricardo Geada, partner and head of the cannabis and regulatory team at Mackrell.Solicitors.

Destigmatizing and legalizing cannabis are certainly positives for the industry, but it’s not just an increase in retail sales fueling the sector’s boom.

The entrance of big money into the industry certainly provides a solid jumping-off point for businesses that partner with investors to increase profitability and valuation.

Without your unique skill, product, process or experience—whatever forms the base of the business and sets it apart from competitors—the investment opportunity wouldn’t exist in the first place.

That’s why it’s essential to put the terms of the business relationship on paper early, so expectations are clear and there are no misunderstandings or surprises in the future.

Finding a business-savvy lawyer to represent your interests can be critical early in the process, especially when dealing with outside investors or venture capitalists.

An operating agreement, sometimes called a shareholder or partnership agreement, is an essential document that defines members’ rights and lays out a framework of operations for events that could render parties in the business unable to continue working together.

If you’re a cannabis industry veteran, you more than likely have expertise on the product itself—whether growing it, selling it, studying it, or manufacturing secondary products like concentrates and edibles.

Remember to take advantage of the leverage you hold as a cornerstone of the business by including provisions in the operating agreement that protect your rights and stake in the company.

If, for example, you are one of several minority shareholders who share ownership with an angel investor who owns 65% of the company, delineating decisions that require a supermajority vote ensures the angel investor can’t commandeer the business or make decisions that inequitably benefit him or her over the minority shareholders.

If a majority shareholder decides to sell his or her shares, tag-along rights give minority shareholders the right to join the transaction and sell their shares along with the majority shareholder at the same price.

Drag-along rights prevent minority shareholders from blocking the sale of a company, but also entitle them to the same terms of sale and conditions as the majority shareholder.

For example, if a majority shareholder wants to buy out your 15% ownership in a company, but you believe those shares will be worth more in the future, a pre-negotiated valuation equation can determine how much your shares might be worth down the line.

In some cases, the operating agreement will dictate that minority shareholders receive their shares in the company on a vesting schedule, meaning the shareholder does not fully realize the full rights and benefits of the shares until certain conditions are met, such as remaining with the business for a certain period of time.

“Cliff vesting,” where a larger percentage of shares vest all at once after a longer period of time , requires the shareholder to stay at the company for a set time period before he or she will fully realize his or her shareholder rights.

To protect against this scenario, minority shareholders should consider including a provision setting forth that if the minority member is pushed out of the operation of the business, his or her shares will continue to vest on schedule so long as he or she was terminated without cause or separated for good reason.

“Cause” is typically a defined term in the agreement and will often include “bad” behavior such as: the conviction of a felony, a breach of fiduciary duty, misconduct causing harm to the company or willful failure to perform substantial duties.

Remember that the efficacy of the protective measures laid out here depend on the negotiated terms in the operating agreement.

CARLSBAD, Calif., April 28, 2021—PRESS RELEASE—Vessel Brand, a community-led company focused on uplifting the cannabis consumption experience, announced a new partnership with GAIACA Waste Revitalization in an effort to combat the ongoing waste issue facing the cannabis vape industry.

Thoughtfully designed with the user experience top-of-mind, Vessel batteries power any oil in style with optimized airflow technology, low-temperature settings and extra-long battery life.

Together, Vessel and GAIACA are committed to addressing the environmental concerns as they pertain to the cannabis vape industry, and this recycling program is an integral step.

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