March 19, 2018
Fast-moving cannabis companies have reaped the many rewards of having first-mover advantage, but it is now time to take a sober second look at broader business practices to ensure they are in line with similarly large and established players in other fields.
The pressing matter at hand? Playing catch-up with corporate governance. Partner Cheryl Reicin, with articling student Shane Thomas, had their opinion piece on what cannabis companies need to do to step up their governance game featured in the Globe and Mail. Below is an excerpt from the article.
Attracting experienced directors with diverse backgrounds to the board is particularly important in this nascent and evolving industry. The industry is changing week by week and there is substantial activity, whether it be financings, mergers and acquisitions, or joint ventures, so directors will be active and must expect to make a significant time commitment in the next several years. This is not for individuals who are merely looking to show up to an occasional board meeting and collect some fees. (…)
Companies had to move quickly to get an early lead in Canada's burgeoning cannabis industry, but the long-term winners will be those firms that can retain their ability to react nimbly while putting in place a corporate governance structure that will provide confidence to investors and regulators. This will also pave the way for the cannabis industry to gain general acceptance akin to any other legal industry.
To read the full op-ed on the Globe and Mail, click here.
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