Mergers & Acquisitions of Cannabis Businesses

Mergers & Acquisitions of Cannabis Businesses

Recreational cannabis is now legal in California, and the marijuana business is already booming.  The State of California reported that it received over $345 million in tax revenue in the first year of regulated sales in 2018, with tax revenues nearly doubling in the fourth quarter as compared to the first quarter.  Legal cannabis sales reportedly reached $2.5 billion by the end of the year.  Recreational cannabis is a lucrative business, but a business nonetheless.

The sale of recreational or medicinal cannabis carries strict rules at the state level and requires careful hoop-jumping at the federal level.  Corporate transactions involving marijuana businesses require expert knowledge and representation from lawyers who deeply understand the cannabis industry, the laws and regulations pertaining to the industry, and corporate law more broadly.  A Los Angeles cannabis business lawyer at McReynolds Vardanyan, LLP in Glendale has the knowledge and experience to guide you through complex transactions involving mergers & acquisitions of Cannabis businesses in California.

Corporate Transactions in the Cannabis World

The cannabis business is like any other new, thriving industry; businesses and assets are growing, expanding, and changing hands on a rapid basis.  There is already a flurry of mergers, acquisitions, and asset sales as existing players grow and new players enter the market.  With each of these developments, businesses must go through the appropriate legal hoops to purchase or sell assets, merge companies, form conglomerates or otherwise alter their corporate structure.

Sale of ownership or significant assets fundamentally alters the operations and control of a business, and you need the help of an experienced cannabis corporate transactional lawyer to advise you along the way and ensure compliance of all applicable state and federal regulations.  You need someone on your side who understands the business implications, the tax ramifications, issues of corporate governance, restructuring, and debt management, as well as the myriad other issues that arise in corporate transactions.

McReynolds Vardanyan, LLP is experienced in handling corporate formation and structure, capital formation activities such as public and private securities offerings and lending transactions, and fielding corporate mergers and acquisitions.  We apply our knowledge of corporate and cannabis law to ensure that you appropriately handle the complexity arising from state-specific statutes and the complicated interactions between federal and state law as it pertains to corporate transactions and the legal cannabis industry.  We are prepared to field matters involving domestic and intra-state activities as well as cross-border and interstate financing and merger and acquisition transactions.

We provide a variety of M&A services, including:

  • Due diligence
  • Compliance reviews
  • Financing for deals and startups
  • Purchase and sale agreements
  • Strategic advising and structuring of transactions
  • Consulting agreements
  • Ownership option contracts
  • Investment agreements
  • Noncompete agreements
  • Lending agreements
  • Stock and asset transactions
  • Corporate governance
  • Mergers, acquisitions, and joint ventures
  • IP transactions and licensing

We will assist your budding business through all stages of the corporate transaction and ensure that you are dotting your T’s and crossing your I’s along the way.  You can focus on expanding your business while we take the lion’s share of the concerns regarding corporate formation, financing, banking, regulatory licensing and permitting, intellectual property, and employment issues that arise from mergers & acquisitions in the cannabis industry.  We provide business advice and legal advice to see you smoothly through a cannabis-related corporate endeavor.

Our Cannabis Mergers & Acquisition Lawyers are Ready to Advise and Represent You

If you are dealing with corporate mergers, acquisitions, or other business matters in the cannabis industry in Los Angeles or Southern California, call McReynolds Vardanyan, LLP in Glendale at 818-855-2115. Our Glendale cannabis business lawyers are available 24/7 and ready to assist your cannabis corporate transaction effectively, efficiently, and legally.

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