Cannabis Business Development
Operating a successful cannabis company is remarkably complicated; it is fair to say that cannabis businesses have to continually navigate through a minefield of operational and procedural requirements. The state itself has realized the complicated network of regulatory requirements that it has enacted and is continually working to minimize some of the unnecessary difficulties. Accordingly, cannabis businesses are not only responsible for complying with current regulatory requirements, but they must also keep abreast of and adapt to ever-changing state and local requirements.One of our core strengths is providing ongoing logistical support through rigorous research, analytics, and networking.We have worked with clients on business development strategies including brand development and marketing strategies, vertical integration options and processes, corporate strategies, labor and employment compliance, and operations-based contracts.
Building multiple operations with proper licensure creates multiple strategic advantages and unwanted complications. In California, and in some other states, it is possible to cultivate, transport, manufacture, distribute and sell cannabis under a single entity. However, acquiring multiple cannabis business licenses isa complicated undertaking that should take into account multiple logistical considerations. Vertical integration projects should consider:
- Whether multiple properties are required to operate;
- Can a premises be partitioned to accommodate multiple licenses;
- Is a prospective location suitable for differing licenses and operations;
- Have you solidified relationships and developed a team to support the added operations;
- How will an investor evaluate the overall chain of operations as opposed to the valuation of each separate operation. These as well as corporate structuring considerations must be addressed prior to expanding your cannabis business. Many companies have failed by trying to take on too much at once, but there are also companies that have been hindered by not expanding their operations when the opportunity presents itself. Green Consulting Partners works with clients to expertly assess expansion options by providing experience-based insight into successful and unsuccessful expansion approaches.
Equity Formation & Management
Bygone are the days of the non-profit cooperative; the corporate structure of an entity has implications on a cannabis business license application, and investors will certainly take a close look at how the company is structured. Deciding to incorporate as a S-Corp, C-Corp, or LLC has tax and ownership implications that effect how a company can raise investment capital and add owners and members to a given entity. States define ownership in different ways; California has a particularly nebulous definition (BPC § 26001). Each owner must submit a LiveScan through the Department of Justice and register with the appropriate cannabis regulatory agency. It is imperative to stay abreast of filing requirements and to obtain the appropriate tax and sales documentation. Green Consulting Partners assists clients in choosing the appropriate business type and ownership structure and can also assist with converting the corporate structure of an existing entity.
We offer complete license application services and our success rate speaks for itself.Green Consulting Partners has never had a license denied that was handled entirely in-house. Our process begins by discussing a client’s goals within the industry. Once clients have chosen a target jurisdiction and business type, our work begins in earnest. We diligently review jurisdictional materials: ordinances, council or board minutes, municipal codes, and application guidelines (if available). Our team outlines the regulatory program and necessary operational requirements, and cross-references this information with the client’s business plan. Green Consulting Partners drafts and compiles the application materials to delicately synchronize the client’s vision with the municipality’s expectations.This approach has allowed us to consistently secure local cannabis business license approval for our clients. At the state level we re purpose the materials and make necessary modifications to submit and obtain the requisite temporary and annual licenses. State and local licensing involve many moving pieces and the coordination of requirements from multiple regulatory bodies. Green Consulting Partners’ experience allows us to expertly navigate these processes and manage client projects to successfully obtain cannabis business licenses.
Operating in the Cannabis industry involves navigating a steady stream of contracts and agreements.Operators must be prepared to deal with employment contracts, vendor agreements, use agreements, operating agreements, stock purchase agreements, lease agreements and multiple other contracts and agreements directly related to cannabis business, as well as ancillary industry contracts. Each type of contract requires a different set of considerations to ensure proper protection of legal interests. Our legal background and experience with legal compliance gives us the ability to efficiently and accurately advise on contracts and agreements on behalf of our clients; we also work with a network of lawyer referrals for contracts that require context-specific legal specialization.
Growth is never by mere chance; it is the result of forces working together. - James Cash Penney