Cannabis (Finance)

 

• Consultation regarding the application of Federal guidelines, regulations, rules and statutes maintaining that cannabis-related trafficking is illegal for any purpose, including as such trafficking may relate to banking and finance issues, as opposed to state laws legalizing the cannabis business in whole or in part.

 

• Consultation for financial institutions on implementing due diligence programs to screen cannabis-related businesses for possible financing.

 

• Consultation regarding required federal filings relating to domestic and international financing activities related to the cannabis business, including the filing of Suspicious Activity Reports (SARs).

 

• Compliance with the Financial Crimes Enforcement Network (FinCEN) audits and requirements.

 

• Tracking and prognostication regarding Federal and state legislative developments that may impact cannabis-related financing.

 

• Authored and implemented corporate policies, procedures and protocols regarding credit unions financing cannabis-related transactions.

 

• Experience with various types of financing transactions, such as forming private equity vehicles, leveraged recapitalizations, private placements of convertible securities, debt, equity and hybrid securities, public offerings, reverse mergers, reverse takeovers (RTOs),  venture capital fund vehicles.

 

• Legal support for restructurings and workouts.

 

• Strategies for coping with Internal Revenue Code (IRC) Section 280E, which prevents businesses engaged in illegal drug trafficking of controlled substances – which includes any cannabis-related trafficking, since the Controlled Substances Act (CSA) lists cannabis as a Schedule I controlled substance –from taking regular business deductions.

 

• Compliance with securities laws, such as the Securities Act Regulations D (for the private placement of securities) and Regulation S (for offshore offers).

 

    Last updated 200817_1109