We authored an article for Mg Magazine over the weekend that you can find here that provides analysis of some of the newly revised regulations released by the three agencies last Friday.
The common theme throughout the BCC revised regulations is increased disclosure and closing the loopholes that have allowed individuals to share in profits of licensed commercial cannabis businesses without being disclosed to the licensing authorities. Some of our clients have expressed great concerns regarding these disclosures, especially where the investors thought they would be able to remain anonymous or hidden behind layers of corporate entities. The truth is, this has always been the case – if you own or share in the profits of any licensed business, the agencies need to know who you are, absent narrow circumstances.
Here at the Cannabis Corporate Law Firm, we like to be solution oriented, so we made some suggestions regarding how we think brand can become licensed or at least registered with the state and how to resolve the white labeling issue. Unless California starts to license or register brokers, they will need to go on the license for any company that pays them a percent of profits or commission.
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