8 Best Practices for Cannabis Transaction Due Diligence


Amy K. Dow, Nathaniel M. Glasser, James J. Oh, Alaap B. Shah, Yulian Shtern, and Brian Hedgeman co-authored an article in Law360, titled “8 Best Practices for Cannabis Transaction Due Diligence.” (Read the full version – subscription required.)

Following is an excerpt:

According to some projections, federal legalization of medical and adult-use cannabis will create $86 billion in additional U.S. tax revenue, as well as $26 billion annually in the U.S. cannabis market, by 2025. As the industry expands, we expect to see new players entering the market and consolidation of existing companies through cannabis-focused mergers and acquisitions, joint ventures, investments and similar types of transactions. Given the extraordinary risks in this industry and the evolving regulatory landscape, investors in the cannabis space should consider the following due diligence matters when evaluating cannabis-focused transactions and investments.