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.

In October 2022, President Biden asked the Department of Health and Human Services (HHS) and the U.S. Attorney General to review how marijuana is scheduled under federal law. In August 2023, the HHS marijuana recommendation went to the Drug Enforcement Administration (DEA) for its consideration. On May 16, 2024, the DEA published its 92-page notice of proposed rulemaking (NPRM) to move marijuana from Schedule I on the CSA to Schedule III. We are currently in a 60-day public comment period that is part of the DEA’s rescheduling process and NPRM. Rulemaking is a complicated and drawn-out process with many twists, turns, and administrative nuances. In this episode, John Hudak, the Director of the Maine Office of Cannabis Policy and former Deputy Director of the Center for Effective Public Management (who was also a Senior Fellow in Governance Studies at the Brookings Institution where he led Brookings’ research into cannabis policy, regulation, implementation, and politics for over 10 years), takes the audience through this historic rulemaking effort by the DEA and what to expect next from federal and state governments. John covers timelines, rulemaking technicalities, the politics behind the NPRM, and the possibility of a bifurcated system for marijuana between pharmaceuticals and state-licensed markets.

This fall, Floridians will vote on Amendment 3, which would legalize cannabis for adults 21 years old and older in the Sunshine State. Existing medical marijuana treatment centers in the state will get first (and maybe the only) dibs to sell adult-use cannabis. It’s been a battle for Florida to even get adult use cannabis on the ballot, and the threshold for adoption of this constitutional amendment sits at a whopping 60% of voter support.

In this episode, Husch Blackwell's Hilary Bricken and Hirsh Jain, founder of Ananda Strategy, a leading cannabis consultancy serving cannabis brands, retailers, technology businesses, and venture capital funds in the United States, Canada, and Western Europe, take us through the importance and significance of Amendment 3—not just for Florida, but for the nation when it comes to meaningful cannabis reform and progress. While this episode was recorded prior to Amendment 3’s clearance for the ballot boxes by state government, Hirsh shares his invaluable insights on just why and how Florida will become the crown jewel of cannabis, surpassing even California and New York, if voters vote yes on Amendment 3.

California’s Emerald Triangle is a famed region in the Golden State for the cultivation of top-notch cannabis. In particular, Humboldt County is home to some of the nation’s most seasoned, generational cannabis farming families. One such farmer is Andy Butts, founder and CEO of Humboldt Trim Company. In this episode, Husch Blackwell's Hilary Bricken and Andy Butts give listeners an insider’s view into farming and distributing cannabis from the Emerald Triangle. Andy also takes listeners through the current maze of California cannabis regulations as they impact generational farmers, craft cannabis, and the concept of cannabis appellations similar to wine. Andy takes a “farmer’s first” approach to cannabis cultivation for which the Emerald Triangle is known, and listeners truly get a feel for what commercial and agricultural life is like for sun-grown cannabis farmers in the Emerald Triangle.

In 2023, Total Wine & More jumped into the cannabis drinks arena in Minnesota. Since then, there’s been an influx of “THC Beverages” hitting the marketplace, including in interstate commerce. How is this legally possible, and why are these libations picking up great speed with consumers? Because a lot of these “THC beverages” fall into the hemp-derived cannabinoid category. Due to the passage of the 2018 Agricultural Improvement Act (known as the “Farm Bill“), hemp and all of its derivatives (containing no more than .3% THC and that are not synthetically derived) are no longer illegal schedule I controlled substances pursuant to the Controlled Substances Act. As a result, enterprising hemp product makers and businesses quickly took advantage of this seeming oversight, while states are just now playing catch up on the regulatory side. Some states are regulating these products, while others aren’t doing anything. In this episode, Husch Blackwell's Hilary Bricken and Adam Terry, CEO of Cantrip, which is taking the hemp-derived drinks space by storm, discuss the trials and tribulations (and successes) of navigating this emerging segment of the cannabis industry.

Cannabis investing is risky business. The current federal conflict, a punitive federal income tax situation, and an inability to access financial institutions put off many institutional investors. Not so though for Emily Paxhia, seasoned institutional investor and one of the very first institutional investors in cannabis via Poseidon Asset Management. In this episode, Emily and Hilary discuss the past, present, and future of cannabis investing in the United States. Emily shares her insights on the biggest booms and busts for Poseidon and what she sees on the horizon for cannabis reform as it impacts investors of all kinds. Despite the current volatility for the U.S. cannabis industry, having launched multiple cannabis-focused funds in the past 10 years, Emily has high hopes for the future expansion of and innovation in the U.S. cannabis industry.