The hemp and cannabis markets have had their fair share of ups and downs over the last five years. Unfortunately, during that time, outside investors with little to no background in either industry have lost thousands of dollars throwing cash at the “Green Rush” and hoping for the best. Both industries still present upside to investors, but only if the investor takes a disciplined in measured approach to investing. Hemp and cannabis attorneys can play a pivotal role today in advising investors in two main areas:
- Help your client understand that regulatory structure that governs a particular business. Any investor should have a working knowledge of the regulations that govern a business it intends to invest in to gauge risk. All cannabis clients should be advised on the problems that the conflict between federal and state cannabis law presents to potential investments and overall investor civil and criminal exposure.
- Due diligence. It’s critical that any hemp or cannabis investor request documentation from any business they intend to invest in that demonstrates that the business is in good standing. Attorneys should scrutinize all relevant corporate documents, licenses, and any corporate liabilities to ensure that the value of the business measures up to any representation made in negotiations.
DISCLAIMER: THIS INFORMATION IS STRICTLY EDUCATIONAL AND DOES NOT CONSTITUTE LEGAL ADVICE.