Seth Goldberg, partner and team lead of Duane Morris' Cannabis Industry Group, spoke with The American Lawyer about how the firm is preparing for cannabis rescheduling.
"What makes reclassification a watershed event is that it frees up capital and allows for more growth and allows for potential consolidation and more successful companies, more competition with respect to multistate operators and get back to a place of equity investment," said Goldberg.
"We have been preparing for that, and lawyers in each of our practice areas—whether IP, corporate, employment—who have cannabis practices are already thinking about how they're going to advise clients in the cannabis industry and also outside of the cannabis industry with respect to how reclassification impacts that type of law." [...]
The combined impact on cannabis businesses of tax liabilities and lack of access to financing "can't be overstated," Goldberg said. Removal of 280E "will have an immediate impact on operator balance sheets," he said.
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