Michael D. Schwamm, Partner at Duane Morris, was a guest moderator at Benzinga’s Cannabis Capital Conference, on Apr 20, 2022.
Watch the full interview:
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).
2022 Trailblazers Cannabis Law: Nanette C. Heide
Duane Morris partner Nanette Heide was named to The National Law Journal‘s list of 2022 Cannabis Law Trailblazers.
What was the genesis of the idea/path that has made you a trailblazer?
The Cannabis industry continues to be a trailblazer industry as a whole but the companies and transactions have grown larger and more sophisticated, making experience with complex mergers and acquisitions and securities laws more important than ever. As a corporate partner in a large law firm that has embraced the cannabis industry for many years, utilizing my knowledge and experience from private equity investments, mergers and acquisitions and securities laws allows me to bring this substantive knowledge to transactions in the cannabis industry.
To read the full text of this interview, please visit the firm website.
Interest Rising in Cannabis Beverages
Beverage companies are looking to enter the cannabis sector. An article in FoodDive about Jones Soda entering the sector quotes Duane Morris partner Seth Goldberg:
Seth Goldberg, a team lead for Duane Morris’ cannabis industry group, said more companies are recognizing beverages as a way to expand their product offerings and connect with a new segment of consumers. Unlike smoking and vaping marijuana, consuming it through a drink is more publicly accepted and allows the individual to enjoy a smaller amount of the drug — making the liquid form more appealing to beverage and cannabis consumers alike.
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.
Q&A: Duane Morris Cannabis Practice Leader Seth Goldberg
Duane Morris partner Seth Goldberg‘s interest in cannabis emerged in 2014 as part of his work as a litigator in the healthcare space. Seven years later, he’s the leader of the firm’s cannabis industry group, and he’s seen the explosive growth of both the regulated trade and the legal work that’s sprouted alongside it.
We recently talked about the developments he’s seen over those seven years as well as other hot topics in cannabis law right now. Here is some of that conversation, edited for length and clarity.
Higher Law: What are some of the big changes you’ve seen since 2014?
Seth Goldberg: Some of the major changes have been the sophistication of the clients, the development of stronger compliance protocols and the improvement of deal terms and deal structures.
To read the full text of this article originally published by Law.com’s Higher Law, please visit the firm website.