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Cannabis businesses face unique challenges when confronted with economic difficulties and financial challenges in an industry suffering from a lack of institutionalized capital. While cannabis remains federally illegal, bankruptcy court protection is denied to plant-touching and, in some circumstances, ancillary companies. Scott Moskol, co-chair of Burns & Levinson’s Cannabis Business Advisory Group, moderated the first panel at the firm’s Fourth Annual State of the Cannabis Industry Conference, exploring both the judicial and non-judicial options for operators, secured creditors, investors, and other stakeholders in the context of distressed transactions as well as other financial issues affecting the industry.
The panel opened with a brief discussion on the apparent financial strength of the cannabis industry, even despite the economic repercussions of the pandemic. Vicente Sederberg’s Charles Alovisetti noted that at the start of the COVID-19 crises there was widespread concern over the financial health of the industry but, the anticipated volume of distress did not materialize. Nonetheless, Mr. Alovisetti cautioned that some cannabis companies will experience distress and, therefore, it is vital that we consider the important questions that will arise in those circumstances – namely, what will happen to a distressed … Keep reading
Click here to watch the full interview.
Burns & Levinson’s Fourth Annual State of the Cannabis Industry Conference featured a highly anticipated “Fireside Chat,” with Commissioner Steven Hoffman, Chairman of the Massachusetts Cannabis Control Commission, in an exclusive one-on-one Q&A with Frank A. Segall, co-chair of the Cannabis Business & Law Advisory Group at Burns & Levinson. After a rousing interview at last year’s conference, Segall and Hoffman followed up this year with a lively and wide-ranging interview that touched upon several hot-button issues regarding the cannabis industry in Massachusetts.
Despite the pandemic serving as a backdrop, the interview opened with the Commissioner offering positive news to potential cannabis license applicants and applications currently in process. Despite relegated to working remotely since early March, the Commissioner noted that the CCC has seen an uptick in productivity of license processing during this time. Since March, the Commission is averaging approximately 50 provisional licenses per month, increasing pre-pandemic numbers. Anecdotally, the Commissioner noted that the CCC had received fewer complaints regarding delays in the licensing process.
One source of frustration in the cannabis licensure process, according to the Commissioner, is the absence of a streamed process between cities/towns … Keep reading