Category: Blog

National Overview of the Cannabis Industry in the U.S.

40 states have legalized cannabis or hemp in one form or another. That’s 28 states with medical marijuana, 8 states with adult use marijuana, and 17 states have some form of legalization of hemp or CBD, which is the non-psychoactive cannabinoid that comes from the hemp plant and helps with seizure disorders. So in 40 […]

The Most Important Thing to Understand About Cannabis Business Law

What you need to understand is that cannabis is a different area of law. This is not franchise law. This is not regular business law. I call it the cannabis-only transactions. That there are provisions in your cannabis contracts and your cannabis legal dealings that you won’t see in any other form of law. You […]

State of Cannabis 2018

Friends, McAllister Garfield’s Los Angeles focused lawyers (Sean McAllister, Kresimir Peharda, and Navid Brewster) will be presenting a workshop at the State of Cannabis Conference in Long Beach, CA on September 25, 2018. The workshop will focus on “Attracting Investment to Your Cannabis Business.” For more information, see Please join us as we gather […]

Why Should You Hire McAllister Garfield P.C. for Cannabis Business Counsel?

National firms don’t understand the complex regulatory regime of cannabis, and that’s what McAllister Garfield specializes in. We specialize in constructing business transaction through the lens of a complicated regulatory scheme. If entrepreneurs go out and hire some big firm that doesn’t understand the cannabis regulatory regime state by state, you will see transaction documents […]

Permitted Economic Interest for Cannabis Businesses

A Permitted Economic Interest (PEI) is a future contingent equity interest approved by the state regulatory agency. We see these PEIs approved in a variety of fashions including option agreements, warrants, or most commonly, a convertible promissory note. The concept is that if a lender provides a business money, instead of recovering the debt owed […]

Out-of-State Ownership Interest in Colorado Marijuana Business

Any individual who wants to take ownership in a marijuana business who doesn’t have one year or more of Colorado residency, has to complete a Pre-Suitability Application. The Pre-Suitability Application is costly, time consuming and financially burdensome and it includes a complete audit of all of your assets. McAllister Garfield has worked with dozens of […]

Kelly Rosenberg Chosen to Sit on NCIA State Regulatory Committee

Friends, Kelly Rosenberg, Senior Attorney at McAllister Garfield, P.C., has been selected to participate on the National Cannabis Industry Association’s State Regulations Committee for the 2018-2019 term. This committee examines and reviews the varying cannabis industry-specific statewide regulations around the country and works to establish best practices or guidelines for states and municipalities to facilitate […]

LA Opens Phase 2 Licensing

Friends, On August 1st, the City of Los Angeles Department of Cannabis Regulation (“DCR”) opened Phase 2 of its licensing processing. Phase 2, which is only open to Los Angeles supply side businesses that were in operation prior to January 1, 2016, is expected to last until 4 p.m. Pacific on September 13, 2018. In […]

Colorado: Mandatory Pesticide Testing begins August 1, 2018

Mandatory pesticide testing for both medical and recreational marijuana flower and trim begins Wednesday, August 1, 2018 in Colorado. All harvest batches created on or after August 1, will require pesticide testing from all medical and recreational cultivation facilities. Pesticide testing for concentrates is not required. Which Pesticides? The permitted pesticides tested are listed in […]

Changes to the California CBD Industry

Friends, This month, the California hemp CBD industry was dealt two major blows affecting the legal status of hemp derived CBD. First, the California Department of Public Health (the “CDPH”) issued a memorandum that provides legal support for its position that the infusion of hemp derived CBD into food products renders the food adulterated and […]