Resources

Client Alerts, News Articles, Blog Posts, & Multimedia

Everything you need to know about BMD and the industry.

Will Federal Legislation Open Cannabis Acquisition Floodgate?

Client Alert
February 18, 2021

Are potential buyers quietly lobbying at federal and state levels to kick open the door to launch a new round of strategic acquisitions? Will presently pending federal legislation, the SAFE and MORE Acts, providing safe harbor for banks and re- or de-scheduling marijuana, be sufficient to mobilize into action major non-cannabis companies that previously shunned the cannabis industry due to the unknown implications of owning businesses whose activities are illegal under federal law?

When tobacco giant Altria invested $1.8 billion in Cronos, and beverage behemoth Constellation Brands invested in Canopy, the investments did not require the assumption of a smorgasbord of unknown risks that come with investing in federally illegal enterprises since neither Cronos nor Canopy had any “illegal” US operations. These include key business issues and concerns, such as banking relationships (almost certainly mitigated by the SAFE Act), stock exchange listings and liquor licensing.

It was recently disclosed that Altria, which has been acquiring ancillary cannabis businesses and intellectual property since its Cronos deal, has engaged lobbyists to promote its cannabis interests. It wouldn’t be much of a leap to speculate that they, and other potential strategic tobacco, beverage and pharma company investors, are both carefully analyzing the pending legislation in the US and actively working to firmly place their feet in the open door and widen the porthole, facilitating a new wave of acquisition activity.

Right now, as the financial performance of cannabis businesses is beginning to pop, the shelves of the acquisition market are fully stocked with potential acquisitions candidates of all sizes, shapes and flavors. If the door is opened, competition and pricing could be eye popping. Think “first mover advantage.”

Stay tuned.

For questions, please contact Business and Corporate Law Member and Managing Partner of BMD's Phoenix/Scottsdale location Stephen Lenn at salenn@bmdllc.com, or 480.687.9747.

Cannabis LawStephen A. LennFederal LawBusiness & Corporate LawIntellectual PropertyRussell T. Rendall
Client Alert

Starting an Advanced Practice Provider Practice

May 13, 2024Advanced practice providers (APPs), which includes non-physician providers such as nurse practitioners, physician assistants, and nurse anesthetists, commonly start their own healthcare practices. Practices may provide, for example, service offerings such as primary care, anesthesiology, mental health, and aesthetics (medical spas). However, there are a number of considerations and steps that must be taken for APPs to compliantly function independently.Client Alert

FTC Increases Targeting of Companies Lacking Cyber Protection

May 13, 2024The Federal Trade Commission (FTC) recently released a comprehensive cybersecurity report outlining key findings and recommendations based on emerging threats, trends in data breaches, and strategies for businesses to enhance their cybersecurity posture observed over the last year.Client Alert

New Federal Medical Conscience Rule and Its Implications

May 13, 2024The Department of Health and Human Services Office for Civil Rights issued a Final Rule to clarify protections for healthcare providers who refuse services based on religious or moral beliefs. This includes protection against discrimination for refusing procedures like assisted suicide or abortion. The OCR can receive complaints, conduct investigations, and enforce these protections. Entities are encouraged to update policies accordingly and display a model notice provided by the OCR.Client Alert

Marijuana Reclassification and APRN/PA Prescribing

May 7, 2024Marijuana is expected to be reclassified by the Drug Enforcement Administration (DEA) from a Schedule I controlled substance to a Schedule III controlled substance as a result of efforts by the Biden administration.Client Alert

Federal Trade Commission Voids Non-Compete Agreements Nationwide

April 30, 2024On April 23, 2024, the U.S. Federal Trade Commission (“FTC”) issued its Final Rule containing regulations impacting non-compete agreements across the country for all employees. The Final Rule implements some of the most impactful changes to employment law during this century. The Final Rule will take effect 120 days from its publication in the Federal Register, which we expect to occur within the next few weeks.
Older posts