The Food and Drug Administration (FDA) issued warning letters to five companies late last month on Monday, November 21, 2022, claiming that they are illegally selling products containing cannabidiol (CBD). The companies targeted are 11-11-11 Brands, CBD American Shaman LLC, Infusionz LLC, Naturally Infused LLC, and Newhere Inc. dba CBDFX. In its Constituent Update, the FDA states broadly that the companies are selling CBD products “that people may confuse for traditional foods or beverages which may result in unintentional consumption or overconsumption of CBD.”[1]…

Continue Reading FDA Warns Five Companies of Aggressive New Approach to CBD Enforcement

The adult-use marijuana market in Michigan has seen a plunge in the price of marijuana. According to the Cannabis Regulatory Agency, the average price of one ounce of marijuana in December 2020 was $350.88. In contrast, the average price fell to $109.22 in September 2022. This rapid price compression puts tremendous pressure on many marijuana businesses as they face greater competition with ever-slimming margins. For some, these market forces may present a financial or existential crisis.

Often, financially-distressed companies seek the protection afforded by federal bankruptcy courts to restructure their finances. There are several benefits to an overwhelmed debtor going through the bankruptcy process. As just one example, once a debtor files for bankruptcy, an automatic stay on actions prevents creditors from collecting against a debtor until the bankruptcy case is resolved or the Court allows the stay to be lifted. In addition, bankruptcy provides an orderly process that provides the debtor with the means of resolving creditor claims simultaneously.
Continue Reading Legal Options for Investors and Owners of a Financially Struggling Marijuana Business

Five states had marijuana on the ballot in last Tuesday’s elections (and another state had psychedelics). Here’s a deeper look at these measures, and what comes next for the cannabis industry.…
Continue Reading 2022 Post-Election Analysis: Where Does Cannabis Go From Here?

The 2022 general election saw cannabis on the ballot in 32 municipalities across Michigan. With the votes tallied, it appears that 13 municipalities voted in favor of initiatives to expand cannabis access that were on the ballot. Some of those municipalities voted to allow cannabis businesses for the first time, while others voted to expand legal access from only medical to adult use. Many of the proposals, both for or against, came back very close, suggesting that the issue remains a divisive one despite the additional tax revenue received by municipalities that already allow cannabis businesses within their bounds.
Continue Reading 2022 Election Results – Cannabis Continues Its Spread Across Michigan

The lazy stoner jamming out to Pink Floyd in his VW van? That trope is long gone. Today’s enthusiasts are a diverse collection that includes executives, parents, healthcare workers, and everyone in between. As new markets continue to emerge and legislative hurdles ease, M&A activity in the cannabis industry is primed for a big year. Here’s what to expect in 2023: …
Continue Reading M&A Industry Spotlight: Cannabis