Cannabis, Hemp & CBD Industry Group

Cannabis laws have undergone major changes and continue to do so at an ever-increasing pace. The majority of U.S. states permit the use of cannabis for either medical or recreational purposes, hemp may legally be cultivated, and production of derivatives from legally-cultivated hemp is allowed. Businesses in the rapidly developing cannabis, hemp, and cannabidiol (CBD) space require the guidance and expertise to help steer them through the rapidly changing, and potentially contradicting, federal, state and international legal landscape in this area. That is why they rely on the expert legal advice and practical business insight that comes from Carter Ledyard’s Partners for Your Business® promise.

Over the last few years we have assisted some of the top U.S. and Canadian companies operating in the industry with their corporate, capital raising, acquisitions and intellectual property needs. Our industry group members have expertise in the following fields:

• Canada Cross-Border Transactions
• Securities and Capital Markets
• Corporate Law
• Mergers & Acquisitions
• Labor & Employment
• FDA Compliance and CBD Advertising
• Trade Secrets and Restrictive Covenants
• Intellectual Property
• Native American Law
• Litigation and Dispute Resolution
• White Collar
• Tax and Application of Section 280E of the Internal Revenue Code

Representative Matters:

• Represented as U.S. counsel Cannabis One Inc., a British Columbia corporation headquartered in Colorado, in a reverse takeover. Continued representation of Cannabis One in its acquisitions of brands, dispensaries and operators in the cannabis industry. Cannabis One is listed on both the Canadian Securities Exchange and the OTCMKTS with a market cap. of approximately $200 million.
• Represented as U.S. counsel, GTEC Holdings Ltd., a British Columbia corporation in a reverse takeover, subsequent listing on the OTCQB and continuing capital raises. GTEC operates a distributor of cannabis by consolidating licensed producers of craft cannabis.
• Represented as U.S. counsel Gabriella’s Kitchen, Inc., an Alberta corporation, in the offering of various debt and equity securities. Gabriella’s Kitchen develops, manufactures, produces and markets wellness products incorporating THC and CBD. Gabriella’s Kitchen holds a manufacturing license issued by the California Department of Public Health and a distribution license issued by the California Bureau of Cannabis Control.
• Represented as U.S. counsel Westleaf Inc., an Alberta corporation in its reverse takeover, concurrent financing transaction and subsequent listing on the OTCQX. Westleaf Inc. has several brands owned and under development in the cannabis industry spanning cultivation, extraction, processing, manufacturing, and wholly owned retail.
• Represents Integrated Compliance Solutions, a provider of cannabis regulatory compliance software to banks and merchant payments solutions to companies in the cannabis space in multiple series of financing.

Recent Publications & Speaking Engagements:

• "Practical Considerations for Insuring Cannabis, Hemp & CBD," Property Casualty 360, January 14, 2020 
• "Carter Ledyard Advises on Industrial Hemp: U.S. Department of Agriculture Publishes Interim Final Rule to Implement 2018 Farm Bill Program," Client Advisory, November 19, 2019
• Alex Malyshev participated in a panel discussion at the ANSI Legal Issues Forum: Standardization and the Cannabis Industry, titled, "The Current and Evolving Legal Landscape: Clarifying the Rules and Regulations that Govern Cannabis Sales, Production, and Use in the U.S.," in Washington, D.C..
• Alex Malyshev participated in a panel discussion at the Meritas Law Firms Worldwide US & Canada Litigation, Labor and Employment meeting on "Opportunities and Challenges With Cannabis," in Phoenix, AZ.
• Alex Malyshev was quoted in, "Global Cannabis Industry: The Essential Primer," Insights from Meritas, October 2019
• Bogart That Joint, But Don't Bankrupt It: Cannabis Businesses in Bankruptcy, New York Law Journal, September 23, 2019
• As Cannabis Industry Matures, Expect a Lot More Litigation, Think Advisor, September 19, 2019
• Seeing Through the IP Haze, ACC Docket, September 4, 2019
• Alex Malyshev presented, "Doing Business With Cannabis, Hemp and CBD Related Companies," ACC Online Education, August 14, 2019
• Is Investing in Cannabis a Conservative Move or a Risky One? Think Advisor, July 31, 2019
• The Marketing and Sale of Products Containing Hemp and CBD Over the Internet, Journal of Internet Law, July 2019
• Cannabis Businesses in Bankruptcy, Client Advisory, June 26, 2019
• Getting Comfortable With Cannabis - Will Your Money Go Up in Smoke?, Client Advisory, June 13, 2019
• New Jersey’s Coming Expansion of Its Medical Cannabis Regime Presents Opportunities to Sophisticated Operators, Client Advisory, May 24, 2019
• Protecting Cannabis and Hemp-Related Intellectual Property, Client Advisory, May 9, 2019
• Things to Consider If You Decide to Invest in the Hemp and CBD Industries, Client Advisory, April 18, 2019
• Despite the Trend Towards Legalization, Challenges Remain for Investors Considering Investment in State-Legal Cannabis Industries, Client Advisory, March 26, 2019
• Alex Malyshev participated in a panel discussion on Global Cannabis Opportunities at the 2019 Meritas Law Firms Worldwide conference in San Diego, California.

Carter Ledyard’s leadership role with Meritas Law Firms Worldwide, a Chamber’s ranked premier legal network, allows us to seamlessly access local expertise in all 50 States, the District of Columbia, Canada, Latin America, Europe, and beyond. Our strategic partnerships with other service providers give us insight into the constantly evolving developments and best practices in the industry.

Group Contacts:

For more information, please contact Guy Lander (co-chair), Alex Malyshev (co-chair), Steven Paul McSloy, Michael Shapiro, Marc Kushner, Ted McDonough, Aaron Cahn, Pang Zhang-Whitaker, Anup Khatri, Matt Schwartz, or your regular Carter Ledyard lawyer.

DISCLAIMER: The possession, distribution, and manufacturing of marijuana are illegal under federal law. State law, which may in some jurisdictions decriminalize such activity under certain circumstances, is superseded by federal law. Violation of federal drug laws carries serious penalties, with the federal government reserving the right to seize and seek civil forfeiture of real or personal property facilitating the sale of marijuana and money or proceeds accruing from such transactions. Section 280E of the internal Revenue Code also disallows deductions for amounts paid or incurred in the carrying on of a trade or business that consists of the “trafficking” of cannabis. Law or policy covering this industry may change at any time.