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After advancing through 13 committees and narrowly winning a 34-33 vote, Minnesota’s State Senate finally approved a bill to legalize adult-use cannabis on April 28th. But before it reaches the desk of Governor Tom Walz (who has pledged to sign it), the bill with have to move to a conference with the State House to reconcile differences with a companion reform measure passed three days prior. With the session ending on May 22nd, the clock is running for lawmakers to get the final bill in front of the governor. Here’s what sets the two versions apart:Continue Reading Cannabis is (Almost) Legal in Minnesota: Here’s What You Need to Know

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

On March 24, 2022, the Michigan Marijuana Regulatory Agency (MRA) announced record-breaking sales numbers in Michigan’s adult-use industry for the previous year. In just the second full year of licensed adult-use marijuana operations, the MRA reported that sales of adult-use marijuana exceeded $1.1 billion for fiscal year 2021.

Local governments are set to receive tens of millions of dollars thanks to the revenue-sharing provisions in the Michigan Regulation and Taxation of Marihuana Act (“MRTMA”). The MRTMA establishes a 10% excise tax on the retail sale of adult-use marijuana. Excise tax revenues are dedicated to Michigan schools and roads, and a significant portion is distributed to local municipalities and counties that have adult-use marijuana retailers and microbusinesses in their jurisdictions.
Continue Reading Michigan Adult-Use Marijuana Sales Exceed $1B in 2021, Creating Millions of Dollars for Schools, Municipalities, and Roads