DLA Piper: Financial Relief for Hemp Businesses in Response to COVID-19 and the Coronavirus Food Assistance Program Barriers
In late April, the US House of Representatives and Senate voted to pass a $484 billion economic stimulus package providing further aid to small businesses, which was signed by the President. The bill provides additional funding for the small business lending program that had quickly been depleted, and it appears that the hemp industry is positioned to take advantage of this new round of funding.
State-legal cannabis companies in the United States must deal with the added complexity of continuing to operate in violation of federal law, and with everything that entails
Due to the federal illegality of cannabis, companies operating in the sector are caught between a rock and a hard place. As we previously wrote, neither federal aid (including Economic Disaster and Paycheck Protection Program loans), nor bankruptcy protection, are available. Like many other businesses caught in the maelstrom, cannabis companies are no doubt scouring their leases and supply contracts for force majeure provision (or other similar provisions), to see if they provide any relief.
Businesses in the cannabis industry are no stranger to complex and largely unintuitive laws and regulations governing their operations. What they may not be aware of, however, are the unique and burdensome tax requirements resulting from operating in an industry that is still illegal under federal law.
Sourcing insurance has always been a challenge for cannabis companies, although many states require proof of insurance for cannabis business applicants seeking licences.
Shook Hardy & Bacon: Cashed Out – Bankruptcy and Alternatives for Distressed Companies in the Cannabis Industry
The cannabis industry must now attempt to rebound in the midst of an ongoing pandemic; however, unlike other industries, it has less tools available to it. With bankruptcy and its protections generally unavailable, marijuana producers and the ancillary industries that serve them must look elsewhere for ways to liquidate or restructure businesses and seek protections from creditors. This article provides an overview of the current state of the legal developments in bankruptcy proceedings of marijuana-related businesses and state-based options these businesses may utilize.
As we approach the October 31, 2020 deadline when all state pilot programs are set to expire, North Carolina (NC) faces a unique challenge in terms of how to proceed with its hemp program. Action is needed by either the state legislature and/or the United States Congress in order to allow for continuity of the hemp program.
It may seem that the big item on the cannabis law reform agenda is the upcoming referendum on recreational cannabis (which is discussed in more detail in our update here). However, the new Medicinal Cannabis Scheme (the Scheme) that came into effect on 1 April 2020 represents significant law reform in this area.
Partner Francisco Gallegos explains the next legislative changes regarding cannabis in Ecuador
In this article, we explore the impacts of the COVID-19 pandemic on cannabis producers and retailers, and the associated legislative responses of federal and provincial regulators.
It is a parlor game to predict which of the minor cannabinoids will be the next big cannabinoid or, as some say, “the next CBD”. In this post, I discuss cannabinol (CBN), a major contender as the next high-value cannabinoid.
This article focuses on the “Cannabis Equity Programs” a number of local jurisdictions have established. These programs are largely the product of a politically driven social policy. Cannabis Equity Programs attempt to remedy inequities that flowed from the “War on Drugs” that immorally injured so many.
This article is the third of four articles that were prompted by the COVID-19 induced depression’s acceleration of the collapse of the cannabis industry
The problem IRC §280E presents for the cannabis industry is the result of the gradual evolution of the use of this agricultural commodity by a small portion of the public into a legal industry in multiple jurisdictions.
Our first article summarizes our views on the impact of the COVID-19 crisis on the cannabis industry with respect to financial record-keeping and tax reporting issues. More accurately stated, we will address the impact of the economic depression triggered by the COVID-19 crisis on the financial future for the cannabis industry.