December 2017

A Cannabis-Themed Wish List for 2018


This past year has been a memorable one for so many different reasons. For Burns, it saw the growth and expansion of our Cannabis Business Advisory Group, the launch and development of this blog, and the successful execution of our first-ever cannabis conference.

In winding down 2017, Scott Moskol and Mike Andreasen weigh in with their “wishes” for all things cannabis related in the coming year.

Scott Moskol

I’d like to see…

  • The end of the new development of private lawsuits being brought by neighbors of cannabis cultivation and/or dispensary facilities against such entities under the auspices of the RICO (Racketeer Influenced and Corrupt Organizations) Act. These complaints generally seek damages, in addition to injunctive relief, that, if granted, would curtail the power of the states to issue valid licenses. Accordingly, to those defendants that are still parties to such lawsuits, we wish for speedy dismissals.
  • Congress amend the Tax Code, such that 280E would no longer apply to a valid, state-licensed, compliant cannabis business. This way, marijuana businesses would not be subject to such an extra, and oftentimes onerous, taxation burden.
  • Whatever new spending bill that is ultimately passed contain a version of the Rohrabacher-Blumenauer Amendment (formerly, the
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Following the Money: Analyzing Capital Flow into the Legal Cannabis Industry


At our recent cannabis conference, financial services experts gathered to discuss the evolution of cannabis-related investments. A panel consisting of Kyle Detwiler (Northern Swan Holdings), Jeff Finkle (ARC Angel Fund), Scott Greiper (Viridian Capital Advisors, LLC), and Harrison Phillips (Viridian Capital Advisors, LLC) talked about specific investor trends, and how these trends will shift as the industry begins to mature. Below are a few highlights from that discussion.

What are the current investor types? When will traditional VC and PE funds do more than “dip their toes?” 
Cannabis-related investments have grown exponentially since 2014, in large part due to the engagement of certain cannabis-focused venture capital funds, special-purpose vehicles, family offices, tech-focused VC funds ancillary to the cannabis industry, public companies, high net-worth individuals, professional angel investors, angel networks and funds, individual partners in VC and private equity funds, and even certain accelerators. While there has also been some traditional VC and PE fund activity over the last few years, this activity represents only 20% of the overall investments made, as the traditional VC and PE funds are still hung up on the obvious hurdles to the industry (e.g., regulation, legality, reputation, mature … Keep reading

The Shifting Landscape of Local Communities


When Massachusetts initially approved the legalization of recreational cannabis in November 2016, some communities exhibited a strong resistance to the end of prohibition by implementing local bans or limitations on future cannabis retail. The way the law is currently structured, if a town’s population voted against legalization in 2016, its officials may impose bans or moratoriums on local retail shops. On the other hand, if a town’s population voted for legalization in 2016, it may still impose bans or moratorium on retail shops, but must first hold a local referendum to decide on the matter. Massachusetts towns have since gone on to impose more than 120 bans or moratoriums on marijuana-related businesses. Although this will not prohibit adults from legally possessing or using cannabis in these communities, it may create a lack of retail supply in certain areas when recreational cannabis shops begin opening next summer, beginning in July 2018.

This pattern of local push-back is not unique to Massachusetts – it’s estimated that in Colorado, the first state to legalize recreational marijuana, more than 60% of local communities have implemented bans against cannabis shops. In Washington, approximately 35% of local communities have implemented bans or moratoriums. Many of … Keep reading