Risk Mitigation Strategies for Ancillary Cannabis BusinessesRead Time: 1 min
There is an enormous opportunity for legal counsel and risk mitigation in navigating the complex and intertwined ancillary cannabis business landscape. The list of businesses that touch or interact with the cannabis industry is growing, and the potential is nearly endless. While some companies are wary of interacting with licensed marijuana businesses for fear of unanticipated consequences (and may even suspect that they already have a cannabis customer), many businesses are safely and successfully serving the cannabis industry with eyes wide open.
Member Heidi Urness (Seattle) will present “Risk Mitigation Strategies for Ancillary Cannabis Businesses” at Cannalaw Summit on May 4, 2023. This discussion will focus on the enormous opportunity for legal counsel and risk mitigation in navigating the complex and intertwined ancillary cannabis business landscape – with a particular focus on where clients need guidance, such as:
- Avoiding being considered a true party of interest and/or financier of a licensed marijuana business (and, if you are, what are the requirements, consequences, requirements, prohibitions, etc.)
- Bankruptcy: When does working with a cannabis company render bankruptcy protections unavailable to an ancillary company?
- Seizure & Forfeiture: Protecting against secured assets being subject to forfeiture for a licensed marijuana business partner violating state or federal law
- Avoiding the illegality of cannabis as a defense to contract enforcement
- BSA and SARs: When do you have to report that you’re dealing with a licensed marijuana company to federal financial authorities?