Cannabis Business Attorneys
Sacks Tierney attorneys help investors and business owners that wish to enter, or are already engaged in, businesses relating to the legal cultivation, processing, distribution and sale of
cannabis and marijuana in Arizona.
"Much of the country looks to Arizona as a leader in the medical marijuana
industry. People want to live here or they want to invest here. Businesses from
other states that already have legalized business are looking to buy or merge
companies in Arizona if the legalization effort succeeds."
Janet Jackim, quoted in the Phoenix
Business Journal, January 24, 2020
For informed investors and entrepreneurs, Arizona’s nascent
legal cannabis industry offers unprecedented opportunities and poses unique
challenges. At the same time, it involves many of the legal, operational and
financial considerations common to any business enterprise.
Sacks Tierney’s position as a leading law firm for owners
and investors in the
marijuana industry is bolstered by its attorneys’ skill, experience and
innovation in capital formation, equity structuring, regulatory compliance,
contract law, and complex business and real estate transactions.
Cannabis Industry Overview
Since 2018, leadership at numerous Arizona dispensaries and
cultivation facilities has changed hands, reflecting an industry in transition
and promises of bigger rewards in the event the voters approve a
recreational/adult marijuana initiative. The pace of these changes is likely to
continue during 2019. Many of the acquiring companies are cannabis conglomerates
from other states, requiring Arizona counsel as they seek to add to their
portfolio of operations. Arizona’s regulatory environment facilitates the change
of control of dispensaries.
Acquisitions of dispensary and cultivation operations, newly
licensed farm fields, strategic partnerships between dispensaries, farmers and
exclusive vendors and the reassessment of management services are common needs
in the industry. Cleanup and refinement of poorly or quickly drafted entity
documents, services agreements and licensing protections are critical to
maintaining licensing, creating a competitive advantage and retaining bargaining
power with vendors.
Positioning a cannabis company’s next phase in the growth cycle
is key in this highly competitive industry, whether by acquisitive or organic
growth, strategic alliances, internal, equity or debt restructuring, merger or
initial public offering.
Business Business and Investment Opportunities
Our recent experience and information that we have gained in
transactions related to Arizona’s medical marijuana industry affirm the growing
opportunities for investors and business owners:
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high net worth and angel investors that have a tolerance
for uncertainty and wish to stake out a beachhead before more
institutionalized investors enter the market;
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owners of Arizona business businesses that will need
substantial capital to remain competitive, or wish to cash out now;
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owners and investors that are interested in multi-state
opportunities and believe that a successful track record in one state will
provide at least some competitive advantages in licensing and national
branding;
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ancillary businesses that do or will serve the legal
marijuana industry; and
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banks and other financial institutions seeking to generate
large deposits and non-price-sensitive fee-based income from an emerging
market.
Business Industry Experience
Sacks Tierney marijuana business clients include high net worth,
joint venture and corporate investors; dispensary applicants, owners and
operators; interveners in receiverships; industry vendors; and litigants. Our
attorneys have:
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prepared dispensary applications and governmental
filings;
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structured private placements and acquisition transactions;
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advised investors and operators on employment, operational,
legal and compliance, and real estate challenges unique to this industry; and
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drafted various business contracts with special attention to
business cultivation, processing and distribution arrangements.
Related Articles
“Commercial
Leasing to an Arizona Cannabis Business,” Sacks Tierney Client Newsletter,
January 2020
“Acquiring an Arizona Medical Marijuana Dispensary License Now May Be the Ticket
to Obtaining an Adult-Use Dispensary License in 2020,” December 2019
Marijuana Legalization Trends Provide
New Business Opportunities for Banks, June 2019
Arizona Supreme Court: Arizona Medical Marijuana Act (AMMA) Protects Possession of Marijuana Extracts, May 2019
Federal Court Rules that Walmart Firing Violated the Arizona Medical Marijuana
Act, May 2019
Decriminalization of Hemp Raises New Opportunities in Agriculture, Medicine,
Fibers/Textiles and Biofuels, January 2019
Cannabis
Developments Keep Coming, October 2018
Trump Agreement with Colorado Senator a Positive Sign for
the Cannabis Industry, April 2018
Tribes and Cannabis: The Enforcement of Marijuana Laws in Indian Country,
July 2015
Medical Marijuana Dispensary Update,
April 2012
Medical Marijuana in Arizona: The Dispensary Application Process,
September
2011
Medical Marijuana Act Raises Thorny Challenges for Commercial Landlords,
June 2011
The Needs of Marijuana Businesses
Whether marijuana becomes fully legal in Arizona or remains
limited to medical use, our attorneys’ experience and ability to anticipate the
emerging needs of Arizona’s legal marijuana industry encompasses a broad
spectrum of investment, financial, regulatory and business ownership issues.
Formation
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License and certificate applications
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Entity structuring
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D&O, member/shareholder issues
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Not-for-profit requirements
Finance
Multi-Entity Management and Service Agreements
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Cultivation
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Processing
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Distribution
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Sale
Real Estate
Ongoing
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