October 09, 2019
Partner Cheryl Reicin spoke with Marijuana Business Daily, discussing California-based advertising company Weedmaps and the realities it faces if it wishes to go public in Canada. Weedmaps has been a topic of controversy as it continues to drop all unlicensed cannabis retailers from appearing on its site. Several sources told Marijuana Business Daily a potential motivator for meeting this legal responsibility might be an interest in the Canadian market.
“There is no opening to have cannabis companies acting in violation of state laws in the U.S. to go public in Canada”, Cheryl made clear.
Cheryl stressed that if Weedmaps is serious about going public in Canada, it may have to form a brand-new company and also scour its financial coffers of any revenues from illegal retailers.
Cheryl added, “If I today say, ‘Going forward, we’re not taking any money from illicit operations, (but) we still have in the system some money…how do we now cleanse it?’”
“Maybe they would have to set up a new entity, maybe they would have to figure out a way of disgorging some of that money…but they’d have to be fully legal, compliant and there would have to be some cleansing”.
Cheryl, along with the rest of our team, provides insight on developments in cannabis on the relevant practice page.