In this episode, we hear from seasoned cannabis industry advisor, Marc Hauser, and host Hilary Bricken, about the top pitfalls and traps in today’s cannabis industry. Marc, a former practicing transactional and corporate attorney, is the current Chief of Staff of Jardin, a well-known Nevada-based cannabis retailer. Marc shares with listeners the variety of issues he’s witnessed in the past seven years in the cannabis industry, including with federal enforcement, state regulation, public and private markets, cannabis company governance, and misguided perceptions of the industry. Marc also discusses the current perils tied to cannabis politics, rescheduling, “hemp versus marijuana”, and the industry scuttlebutt surrounding the same. If you want to cut through the noise to get down to the hardline cautions currently in the cannabis industry, tune in now!

The Corporate Transparency Act (CTA) seeks to increase corporate transparency and combat financial crimes in the U.S. such as money laundering and terrorist financing. Enacted in January 2021 as part of the National Defense Authorization Act, the CTA requires certain business entities to disclose their beneficial owners—individuals who ultimately own or control the company. Namely, corporations, limited liability companies, and similar entities must report their beneficial owners to the Financial Crimes Enforcement Network. Some entities, such as large operating companies, regulated entities (banks, insurance companies, etc.), and entities already subject to extensive federal regulation, are exempt from these reporting requirements. There are steep penalties for non-compliance or falsifying information, including fines and possible imprisonment. Even though cannabis companies are federally illegal, they are not exempt from reporting under the CTA. In this episode host Hilary Bricken, and Yuefan Wang, corporate, M&A, and securities partner at Husch Blackwell, discuss the mechanics of the CTA and how and when cannabis companies must comply, including consequences to cannabis companies if they fail to report.

There are now dozens of multistate operators (MSOs) in the U.S. cannabis industry. Since 2010, the concept of MSOs has carried many connotations, good and bad. At times, MSOs are considered the ultimate form of “Big Marijuana,” and at other times, they’re considered indispensable to the democratic experiment that is state-by-state legalization. Rarely do we get to peek into the daily inner workings of these MSOs, even though the overwhelming majority are publicly traded. In this episode, Husch Blackwell’s Hilary Bricken and Jushi’s Executive Vice President of Legal Affairs Matt Leeth discuss Jushi’s day-to-day happenings as well as long-term vision. Currently, Jushi operates 38 retail facilities and maintains roughly 1,200 employees throughout the U.S., while offering numerous cannabis brands to both patients and adult-use consumers. During this episode, Matt dishes on the challenges of scaling, regulatory differences from state to state, keeping investors happy, and what Schedule III will mean for Jushi and other MSOs.