New York State’s Office of Cannabis Management (“OCM”) held a board meeting on May 19, 2020. As always, the meeting was available for observation by the public through online streaming. Continue reading “New York’s Office of Cannabis Management Grants Cultivation Licenses and Encourages Enthusiasm for Dispensary Licenses”
Meet Michael Schwamm, a Legal Wiz Specializing In All Things Cannabis
Paul Josephson Takes Part in The Future of Cannabis Panel at the Benzinga Cannabis Capital Conference
Duane Morris partner Paul Josephson participated in the panel discussion “The Future of Cannabis” at the Benzinga Cannabis Capital Conference on April 20, 2022. Watch the panel below.
Duane Morris Helps Steer Harborside’s Purchase Of Calif. Co. Loudpack
California cannabis retailer Harborside Inc. announced Tuesday that it had closed a deal to purchase cannabis manufacturer and distributor Loudpack in a cash-and-stock deal steered by law firms Duane Morris LLP, Aird & Berlis LLP, Cassels Brock & Blackwell LLP and Feuerstein Kulick LLP.
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Under the terms of the deal, Harborside acquired all equity in Loudpack through the issuance of approximately 91 million subordinate voting shares and 2 million warrants, which can be used to purchase subordinate voting shares at $2.50 each within the next five years. Harborside also assumed $50 million in Loudpack’s debt and paid approximately $5 million in cash.
The deal adds 15 new California retail locations, manufacturing facilities and 230,000 square feet of cultivation space to Harborside’s portfolio.
Harborside, which currently trades on the Canadian Securities Exchange and the OTCQX, a U.S. over-the-counter exchange, is expected to change its name to StateHouse Holdings by the end of the month, the company said.
Harborside received legal counsel from Aird & Berlis LLP and Cassels Brock & Blackwell LLP in Canada and Duane Morris LLP in the U.S., led by partner Nanette Heide.
To read the full text of this article, please visit the Law360 website (subscription required).
Tunnel Vision: How Cannabis Lawyer Paul Josephson Scored a Front-row Seat to a $13B Piece of Infrastructure
Duane Morris partner Paul Josephson was featured in this article published in New Jersey Super Lawyers magazine.
Josephson came to cannabis law after learning state contracts and licensing skills from mentor Clive Cummis, who died in 2010.
Thanks to Cummis’ deep infrastructure work, Josephson spent the ’90s as outside counsel for the New Jersey Turnpike. Then like Cummis, Josephson got into political law, and has spent the last two decades representing gubernatorial campaigns. And when Gov. Phil Murphy pushed legalizing weed, Josephson says he was already in the right place at the right time.
To read the full text of this article, please visit the New Jersey Super Lawyers website.
More Investors Eying Ways to Tap the Higher Returns of Cannabis Real Estate
Duane Morris partner Michael Schwamm was quoted in an article on WealthManagement.com.
The past few years have brought cannabis legalization to multiple states, giving real estate investors a new alternative asset class to put their money into. It looks like this trend is only going to intensify in the months ahead.
As we get further into 2022, all U.S. states without current medical cannabis legalization are now considering legislation or ballot initiatives to legalize it. In addition, some states where medical cannabis is already legal may take the next step this year to allow adult recreational use. […]
Twenty-one additional states may legalize cannabis use in some form this year, according to Michael Schwamm, a partner in the New York office of the law firm Duane Morris. […]
“Real estate investing (along with ancillary services) is often the entry point for many investors,” Schwamm adds. “As the industry continues to gain acceptance, I am seeing more and more traditional real estate investors taking a look at this market as they are able to get higher returns in the cannabis sector vs. other [real estate] markets.”
To read the full text of this article, please visit the WealthManagement.com website.
New York State Cannabis Update
By Michael Schwamm
More than 520 cities, towns and villages (1/3 of all municipalities in New York state) have opted out of allowing cannabis retailers and consumption lounges in their municipalities as of the December 31 deadline, according to new data released by the OCM. Of that number, 75 municipalities opted out of consumption lounges, but will still allow cannabis retailers. On the other hand, three towns are banning retailers, but will allow consumption lounges. Continue reading “New York State Cannabis Update”
Harborside to Combine with Urbn Leaf and Loudpack to Create StateHouse Holdings
Harborside Inc. (CSE: HBOR), (OTCQX: HBORF) a California-focused, vertically integrated cannabis enterprise, is pleased to announce that it has entered into definitive agreements to acquire UL Holdings Inc. (“Urbn Leaf”), a top California cannabis retailer with a dominant position in Southern California and LPF JV Corporation (“Loudpack”), a leading manufacturer, cultivator and distributor of award-winning cannabis brands in California . Following completion of the Transactions, Harborside is expected to be renamed StateHouse Holdings (“StateHouse”), subject to shareholder and regulatory approval.
Duane Morris partner Nanette Heide, who led the team that acted as United States legal counsel to Harborside, commented, “We are super proud of Harborside for taking on the challenge of pursuing two opportunities almost simultaneously and delighted to be the legal team that led them through this intense process.”
To learn more about the transaction, please visit the New Cannabis Ventures website.
New York DOL Publishes Guidance on Recreational Use of Cannabis Related to the Workplace
As we previously reported earlier this year, Governor Cuomo signed the Marijuana Regulation and Taxation Act (“MRTA”), which legalized adult-use and possession of cannabis, effective March 31, 2021. The MRTA amended Section 201-D of the New York Labor Law (“NYLL”) making it illegal for employers to discriminate against someone for their use of cannabis outside the workplace, outside of work hours and while not using their employer’s equipment or property.
This spurred some obvious questions from employers- Can we take action against an employee for using cannabis while working? Can an employee use cannabis while on breaks? What about employee use of cannabis if they are not at work on premises but are on call? The New York Department of Labor has now published FAQs addressing these, and other, common employer questions.
Report of Office of Cannabis Management Board Meeting, November 3, 2021
The meeting was called to order at 1:00 p.m. by the Chairperson, Tremaine Wright, noting that all parties were present and Ms. Garcia was attending via remote contact. Ms. Wright stated that the meeting was being recorded and will be available on the Cannabis Control Board website. Ms. Wright indicated that the agenda would include opening remarks, approval of the minutes of the previous meeting and then a report by the Executive Director of the Office of Cannabis Management, Chris Alexander. She reminded the audience and the Board members that the law was passed March 31, 2021 and as a result, while some aspects were moving swiftly, much of the work being done was still preliminary. The work has been mostly staffing, hiring new employees and moving staff from other New York State departments, principally the Department of Health. Continue reading “Report of Office of Cannabis Management Board Meeting, November 3, 2021”