The U.S. Food and Drug Administration (FDA) has recently issued warning letters to four companies concerning the marketing of products containing cannabidiol (CBD). FDA alleged that claims made on websites and social media webpages concerning the health benefits of CBD violated the Federal Food, Drug and Cosmetic Act. The products at issue included CBD-infused oils, edibles, tinctures and creams, and the manufacturers included statements claiming various health benefits from CBD.
To read the full text of this Alert, please visit the Duane Morris website.
By Paul P. Josephson
In a rare 2-1 decision, New Jersey’s intermediate appeals court has overturned the decision of New Jersey’s Director of Consumer Affairs that he does not have the authority to reschedule marijuana from a Schedule I to Schedule IV substance. The dissent affords the state the right of appeal to the New Jersey Supreme Court, and the state quickly confirmed it will appeal.
Contrary to several early press reports, including Associated Press coverage reprinted nationally, the appellate judges did not require the Director to review Schedule I status. Continue reading “Appellate Ruling Confirms New Jersey’s Authority to Reschedule Marijuana, But Does Not Mandate Rescheduling”
By Paul P. Josephson
In anticipation of electing a new governor in November 2017 and enactment of adult use (recreational) cannabis legislation in the first half of 2018, the New Jersey Cannabis Industry Association and industry thought leader Weedmaps sponsored the first education seminar on Cannabis Policy, Zoning & Licensing designed for New Jersey public officials on September 14 in New Brunswick, New Jersey.
Moderated by David O’Brien, Director, East Coast Government Relations, Weedmaps, the panel discussed what constitutes good local cannabis policy, what has worked and not worked in legalized jurisdictions, and how to create a responsible local marketplace for the cannabis industry while ensuring public safety, protecting public health, and deterring youth from use. Continue reading “DM Speaks on New Jersey Recreational Cannabis Bill”
As I note in the linked article, insurers only stand to gain, and in big ways, from underwriting cannabis businesses. Growers, processors, dispensaries and ancillary businesses need a full range of coverage, and are ready to obtain it! Just as in any industry, insurance is a critical component to success in the cannabis space and will hasten the growth of markets already expanding at warp-speed. There are ways for insurers to cover the medical and recreational marijuana markets notwithstanding the regulatory uncertainty. It may require some creativity, but given the financial upsides, it should be well-worth the time and effort it takes to find the optimal pathway.
The medical marijuana market in Pennsylvania does not go live until, at the earliest, January 2018. However, the applicants for permits were required to develop business plans based on pro forma projections without having any “actual” information about marijuana sales in the market in which they intend to operate. Actual sales information from other states may be a useful proxy, but not necessarily a completely reliable one because of the differences in the regulations that define the marijuana markets in each state. A good example of the challenge in valuing a cannabis business is the recent proposal by Franklin Labs, which obtained one of 12 permits to grow cannabis in PA, to sell its permit for $20,000,000 months before the PA market goes live.
Join Duane Morris’ Patricia Heer at the October 12 NYC Women Grow event, “Know the Law: The Legal Side of a Cannabis Business,” in Duane Morris’ New York office, starting at 6:30 p.m.
The panel discussion will address the legal issues that current, future or ancillary businesses need to consider when working in the cannabis space.
Patricia H. Heer Special Counsel, Duane Morris, LLP
Deanna Clark-Esposito, Managing Attorney, Clark-Esposito Law Firm, P.C.
Lauren Rudick, Partner, Hiller, PC
For more information and to register, visit the event website.
Duane Morris’ Patricia Heer will be presenting at the 4th Annual Cannabis World Congress and Business Exposition in Boston on October 4-6, 2017.
Patricia’s presentation, “Cannabis and Social Media with Some Practical and Legal Implications,” will take place on Friday, October 6 at 11:00 a.m.
The Annual Cannabis World Congress and Business Expos are the leading forums for doing business in one of the fastest growing industries in the United States. If you’re employed in the cannabis industry, a current business owner, interested in starting a cannabis business, provide private equity and investment resources, or provide professional or business services, these events provide numerous informative presentations and networking opportunities.
For more information and to register, please visit the event website.
Over the past few years the number of states that have legalized marijuana in some form has grown substantially to the point where, as of this writing, 29 states and the District of Columbia have legalized marijuana for either medical or recreational use. This recent acceptance of marijuana by a significant number of states has created a brand new industry, which is estimated to generate approximately $7.0 billion in 2017 and $24.5 billion by 2025. This industry is clamoring for acceptance into a financial system that allows participants to bring the cash generated into the secure environment afforded by our banking system. This will not only provide security to the marijuana related businesses (“MRBs”), but will also permit better accounting, monitoring, and taxing of funds generated by those businesses.
To read the full text of this article, please visit the Duane Morris LLP website.
Duane Morris was mentioned in this U.S. News Best States article about law firms that have set up practices that focus on the cannabis industry, with a focus on firms in the Philadelphia area and advising companies on Pennsylvania laws related to the cannabis industry.