Culhane Law, National Securities Law Firm for the Cannabis Industry
Culhane Law represents entrepreneurs and business owners seeking funding and growth capital through private placements and securities offerings. Their securities attorneys provide advice and assistance with structuring securities offerings, preparing private placement memorandums, securing exemptions from federal and state registration requirements and documenting the transaction.
Securities Offerings and Private Placements
Securities offerings are heavily regulated and complex transactions. Our attorneys represent entrepreneurs and business owners seeking funding and growth capital through Regulation D private placements and securities offerings.
While a full-blown private placement memorandum may be cost prohibitive for many start-ups and emerging growth companies, there are other cost-effective solutions that can substantially mitigate your risk to investors and regulators. We frequently prepare a suite of offering documents to be used with a pitch deck to communicate the essential deal terms, disclose the material risks and provide the necessary disclaimers to qualify for Regulation D exemptions and related state blue sky exemptions.
Counseling Capital Raising Campaigns by Cannabis Businesses
The emerging cannabis industry faces unique challenges in capital raising and financial investments. Particularly in the areas of medical and adult-use marijuana, traditional financing options such as business loans may not be available. Many banks, credit unions, and other financial institutions are unwilling to lend to marijuana-based businesses. Whether due to their own internal policies and procedures, or a misunderstanding of the commercial uses for hemp-derived cannabinoids, those financial institutions will often turn away lawful businesses seeking growth capital. Because of federal restrictions on funding controlled marijuana-related businesses and internal banking policies that affect the cannabis industry, entrepreneurs in marijuana and industrial hemp may have to turn to private investors to raise the capital needed to operate their businesses.
Culhane Law understands the legal limitations on cannabis financing. Our business lawyers know when cannabis professionals can, and cannot, approach banks and other financial institutions for their corporate financing needs. They can assist in creating introductory documents on behalf of industry entrepreneurs helping financial decision-makers understand the difference between legal restrictions and an abundance of caution.
Considering Investment Strategies for Angel Investors, Fund Managers and Family Offices Considering Cannabis Investments
The limitations on capital raising within the cannabis industry present unique opportunities for angel investors, private equity funds, venture capital funds, family offices, and portfolio managers willing to step into the field. By making strategic investment decisions to partner with cannabis entrepreneurs, early-stage investors can improve the chances of receiving substantial returns on their investment. Initial showings in states that implemented hemp-regulation early and have adopted laws legalizing adult-use marijuana show that the industry promises substantial returns for those who invest carefully and intelligently in marijuana, industrial hemp and CBD consumer products.
However, not every marijuana- or hemp-related business will be successful. Culhane Law has the industry-specific experience and business acumen to assist investors and fund managers in structuring an investment strategy and performing due diligence on the target company’s structure, ownership, and profitability. The attorneys at Culhane Law can also assist investors in considering potential regulatory and licensing barriers that could interfere with potential investments meeting their financial projections and time lines.
Crafting Financial and Investment Securities for Marijuana and Hemp Investors
In the financial world, the “how” of investment securities is nearly as important as the “what” of investment decisions. Even the strongest business plan could result in a financial loss without the proper financial and investment securities and corporate documentation. Culhane Law has the knowledge and experience to craft cannabis-specific deals and prepare securities and corporate funding agreements that will protect investors’ capital while allowing entrepreneurs the flexibility to start and expand their marijuana and hemp businesses.
This is a complex area of the law, overseen by federal regulators and state licensing boards alike. Without the proper initial financial backing and ongoing supervision and assistance from investors, fledgling entrepreneurs could find themselves facing levels of bureaucracy that they do not understand and that make it next to impossible to meet their investors expectations.
The corporate attorneys at Culhane Law understand how to navigate this crowded legal field and move toward the goal of a robust financial investment that will result in profitable returns for years to come. They know how to pair strong financial securities with ongoing advice and counsel to keep business owners on track and meeting their financial projections.
The Culhane Law attorneys work with deal makers, private equity funds, venture capital funds, family offices, portfolio managers, and entrepreneurs within the cannabis industry to create securities and capital raising documentation needed to fund hemp and marijuana startups and help them grow. Their attorneys provide up-to-date legal advice as clients consider their investment options and corporate restructuring strategies.
Call (612) 483-5385 or contact Culhane Law online to schedule a meeting with an attorney.