Cannabis Law Perspectives

Legal insights into california's cannabis industry

Important considerations for composition of the Board of Directors for cannabis companies.
Corporate & Transactional
Hilary St. Jean

Crucial Considerations For The Composition of The Board of Directors

In a corporate context the Board of Directors (the “Board”) is the most important governing body for the corporation. The Board holds ultimate responsibility for the business and affairs of a company. Other than items also requiring the vote of the shareholders, the business and affairs of the corporation are managed, and all corporate powers are exercised by or under

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Preferred stock financings as one form of equity financing for you cannabis business.
Corporate & Transactional
Hilary St. Jean

Securing Funding for Your Cannabis Business Through Preferred Stock Financings

Types of Financings for Cannabis Businesses Financings for cannabis businesses can take different forms. There are debt financings and equity financings. Debt Financings Debt financings often are documented in instruments such as promissory notes (whether simple loans with interest that accrue and mature, or loans convertible into equity on certain events or otherwise mature). Equity Financings Equity financings often are

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LLCs & Corporations: Formation & Entity Structure Considerations
Corporate & Transactional
Hilary St. Jean

Formation & Entity Structure: Important Considerations for Startups

Decisions, decisions! Businesses often wonder where to start in connection with pulling together corporate paperwork for initial operations, including as to how they should structure their businesses and what entity type to choose. Many new entrepreneurs don’t have a broad understanding of how different types of entities operate and why it’s important to consider a variety of factors when choosing

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Capitalization Basics for Cannabis Startups
Corporate & Transactional
Hilary St. Jean

Capitalization Basics for Cannabis Startups

Startup founders often become swept up in the day-to-day on early product development and business development or other matters and may forget to pay adequate attention to initial company ownership and equity rights matters. It is nonetheless essential to document all equity issuances intended in real time, including documenting founders’ capitalization as soon as possible after entity formation.   A

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Financing Considerations for Startups and Early Stage Cannabis Businesses
Corporate & Transactional
Hilary St. Jean

Cannabis Startup 101: Financing Considerations for Early Stage Businesses

There are many considerations that come into play with financing early stage businesses, including how to budget appropriately for the business to be successful and how to structure capital raises, among other concerns. Budgeting With Risks In Mind Early stage companies – whether in the cannabis space or otherwise – often need more frequent infusions of capital than established businesses

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Finance 101 for Cannabis Startups: Budgets, Forecasts, and Foibles
Corporate & Transactional
Hilary St. Jean

Finance 101 for Cannabis Startups: Budgets, Forecasts, and Foibles

It’s no mystery that startups struggle to manage their budgets and company financials.  More often than not, early-stage companies have inaccurate financial forecasts; the fiscal runway isn’t long enough, and the budget falls short. The task of creating a projection at the start of a company is generally difficult for many reasons, including that the estimates used in the forecast

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Bureau of Cannabis Control California's Proposed Regulations for Cannabis Businesses
Regulatory Compliance
Hilary St. Jean

Bureau of Cannabis Control’s Newly Proposed Regulations

The Bureau of Cannabis Control recently announced the release of final proposed cannabis regulations which were submitted December 3, 2018 to the California Office of Administrative Law (OAL) and are currently under review by OAL.  The proposed changes will not be in effect until they are approved by OAL but we expect them to go into effect, as drafted, upon

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Anticipating Due Diligence for Cannabis Industry Transactions
Corporate & Transactional
Hilary St. Jean

Anticipating Due Diligence for Cannabis Industry Transactions

Due diligence plays an important role in many types of cannabis industry transactions.  Due diligence involves a third-party conducting a thorough review of certain documents and records related to a business.  As a best practice, cannabis companies should remain aware of the various times when third parties may conduct due diligence with respect to their business. Often investors participating in

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Cannabis Startup 101: Building a Strong Foundation for Your Cannabis Business
Corporate & Transactional
Hilary St. Jean

Cannabis Startup 101: Building a Strong Foundation for Your Cannabis Business

Starting a company is intimidating for most, if not all, early stage entrepreneurs. Often founders are product-focused and put legal concerns on the back burner in hopes that they can get up and running before incurring legal expenses.  Unfortunately, in the cannabis space especially, it’s important to have legal advice at the outset of the business to avoid later excess

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