Hidden Liabilities in Cannabis Investments: What CEOs and Investors Need to Know in 2025
The MedMen disaster still baffles financial experts. Despite having no proven track record, the company's founders convinced sophisticated investors to pour hundreds of millions into what would become one of the Cannabis industry's most spectacular implosions. Sexual harassment claims, allegations of fraud, questionable accounting practices, and ultimately a $411 million bankruptcy filing—the warning signs were flashing in neon, yet the checks kept flowing.
The allure is understandable. Cannabi...
Choosing the Right Cannabis or CBD Entity Structure
NOTE: When forming a legal entity it is best that all parties involved seek experienced, informed legal counsel. Preferably a tax AND corporate attorney that can help guide you in making legal decisions.
At the inception of a Cannabis or CBD company, one of the most important first steps is to decide on the entity structure, where the client will be deciding how the business will be taxed, how equity will be dispersed when investors come on board, and how to protect the assets of owners, amon...