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Welcome to Cannabis Industry Insights. This blog provides timely and insightful analysis of developments impacting the ever-changing cannabis industry. Authored by our trailblazing Cannabis team—one of the first in the United States to utilize its extensive corporate and finance experience to support the cannabis industry—the blog is a resource for those who currently or who intend to invest in, operate, or otherwise participate in the world of legalized cannabis.

Tip-Pooling in Cannabis Dispensaries: Be Wary of Managers and Supervisors

Carmen F. Francella III — For budtenders, tips earned in a dispensary can add up to hundreds of dollars per week. However, how that money is pooled and divided is critical for a dispensary operator to understand. Managers and supervisors, be wary. 1. What Is a Tip Pool? Tip pooling in a dispensary is the practice…

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ESOPs for Cannabis Companies: A Strategic Solution to 280E Tax Hurdles

Scott Moskol recently spoke with Investing News Network about how employee stock ownership plans can offer tax advantages and foster sustainable expansion for U.S. cannabis companies. Read an excerpt below: In light of Section 280E of the US Internal Revenue Code, which significantly inflates effective tax rates by prohibiting standard business deductions for companies trafficking…

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Blazing New Ground: Cannabis Holding Company Obtains Chapter 15 Recognition

Scott H. Moskol, Evan Jason Zucker, and Michael B. Schaedle — Introduction The cannabis industry has been undergoing a significant wave of defaults and receivership proceedings in recent years. Faced with price compression and increased competition including from the illicit market, limited access to traditional sources of debt and capital markets, and compressed margins, many cannabis…

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Blank Rome’s Cannabis Industry Insights blog provides timely and insightful analysis of developments impacting the ever-changing cannabis industry. Authored by our trailblazing Cannabis team—one of the first in the United States to utilize its extensive corporate and finance experience to support the cannabis industry—the blog is a resource for those who currently or who intend to invest in, operate, or otherwise participate in the world of legalized cannabis. The blog will cover topics such as business formation, legal and regulatory compliance, corporate structuring, joint ventures, mergers and acquisitions, fund formation, debt and equity financing, real estate acquisitions and leasing, receiverships, workouts and restructurings, labor and employment issues, data privacy and security, intellectual property protection, and 280E taxation issues, among others. Subscribe to our blog to stay informed.


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Please contact Blank Rome for permission to reprint. Notice: The purpose of this update is to identify select developments that may be of interest to readers. The information contained herein is abridged and summarized from various sources, the accuracy and completeness of which cannot be assured. This update should not be construed as legal advice or opinion, and is not substitute for the advice of counsel.

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