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PsychedeLinks – June 9, 2023

PsychedeLinks is a curated selection of top news stories impacting business, research, and culture in the psychedelics ecosystem, crafted by Emerge Law Group’s groundbreaking Psychedelics Group.

 Emerge’s Hot Take

Medford Approves First Psilocybin Service Center
On May 25th, the Medford Planning Commission voted to approve plans for the launch of Shrooms Help Center, the city’s first psilocybin service center. The center will occupy a currently vacant building on Market Street, neighboring a nearby coffee shop and a wellness center. When complete, the treatment facility will boast six therapy “rooms,” including an outdoor area of approximately 8,000 square feet. As part of the approval process, the Commission conducted an in-depth review of Shrooms’ business plans, including parking, staffing, and business hours, with the only unique condition of the approval being the limitation of psilocybin administration hours to 8am - 11:59pm. The city’s approval of the service center is welcome news to current and prospective psilocybin facilitators, as many have expressed concern over the early disparity between the number of facilitator and service center licenses. While Shroom Help Center’s OHA license is still pending, if approved, the license will be the first service center license awarded in Medford since licensure began earlier this year. “We were concerned early on that some areas of the state would be underserved by psilocybin licensees. Would we end up with pockets of oversaturation in populated areas and other less populate regions wouldn’t have access to services at all? This approval allows for psilocybin coverage in a smaller jurisdiction and hopefully represents a continuing trend. It’s exciting to see service centers popping up throughout the state,” says Emerge attorney Alex Berger.

 Other Noteworthy News

Rhode Island Lawmakers Approve Psilocybin Legalization Bill
“A Rhode Island legislative committee this week approved a bill to legalize the possession and cultivation of psilocybin mushrooms. The measure, House Bill 5923, was approved by the House Judiciary Committee by a 12-2 vote on Tuesday, according to a report from Marijuana Moment. A companion bill is pending in the Rhode Island Senate, where the chamber’s Judiciary Committee is holding the bill for further study. If passed, the legislation would eliminate criminal penalties for adults who possess or cultivate up to one ounce of psilocybin mushrooms for personal use. Up to one ounce of mushrooms could also be shared by one adult with another. The bill is slated to go into effect on July 1.”
First-Of-Its-Kind Study Reveals How Psilocybin Therapy Helps Treat Alcohol Addiction
“[A] first-of-its-kind analysis released on Monday is offering novel insights into exactly how psychedelic-assisted therapy works for people addicted to alcohol. Researchers at NYU, UC San Francisco and the mental health practitioner training provider Fluence set out to investigate the therapeutic mechanisms that led a cohort of people with alcohol use disorders (AUDs) to significantly reduce negative drinking behavior after participating in an earlier landmark psilocybin clinical trial. The study, published by the American Psychological Association in the journal Psychology of Addictive Behaviors, revealed several common themes among participants that could help inform future research and therapeutic applications as more states move to promote psychedelic studies and regulated access. The study subjects almost universally said that they had experienced inner narratives that consisted of excessive blame, guilt and resentment toward people they were close to, and that inner voice was often self-critical and lended to intrusive thoughts. Another key takeaway from the qualitative analysis is that while the participants who went through the clinical trials generally reported fewer days drinking and reduced desire to drink, cravings didn’t fully disappear for everyone and it was understood that psilocybin on its own is not a panacea.”
What Does Good Psychedelic Therapy Look Like?
“As MDMA and psilocybin treatments become more mainstream, the therapy component has come under scrutiny. While there is mounting evidence that psychedelics could offer much-needed new treatments for intractable mental illness, stories of abuse or trauma have also emerged — which have more to do with the therapists than the drugs. Twenty years of research has standardized the dosage of the drugs used in clinical trials, but the therapy part has not received similar scrutiny. The lack of scientifically backed best practices has prompted researchers, clinicians and former patients to call for a more critical look at the therapeutic component of psychedelic therapy.” To Dr. Amy Lehrner, the clinical director of the Center for Psychedelic Psychotherapy and Trauma Research at the Icahn School of Medicine at Mount Sinai, “what researchers should be working to standardize now are general therapeutic principles while they continue testing whether the treatment as a whole is safe and effective. ‘Afterwards,’ she said, ‘people may investigate: ‘Well, what if we tweak it like this? What if we change it like that?’’”
LISTEN: Oregon is Moving to Legalize Psychedelics
“In Oregon, psychedelics are moving from illegal status to an approved product. But this brave new world comes with lots of regulations and challenges, including training psychedelic 'facilitators.' Deena Prichep reports.”

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CannaBeat – June 7, 2023

CannaBeat is a curated biweekly selection of top news stories impacting business, research, and culture in the cannabis industry, crafted by Emerge Law Group.

Emerge’s Hot Take

Finding Essential Oil Dispensers to be Illegal Drug Paraphernalia, Trademark Trial and Appeal Board (“TTAB”) Affirmed Refusal of Two Federal Trademark Applications

Last month, the TTAB published a precedential opinion affirming the United States Patent and Trademark Office’s (“USPTO”) rejection of two applications for the marks “BAKKED” in standard character form and a corresponding logo. The applications sought registration for an “essential oil dispenser, sold empty, for domestic use,” and were originally filed in 2016.

Despite the absence of any reference to cannabis in the applications, the USPTO refused to register the marks due to alleged violations of the Controlled Substances Act (“CSA”). For further details, refer to the opinion in the case of In re National Concessions Group, Inc. available HERE. This decision underscores the USPTO’s and TTAB’s heightened scrutiny of applications associated with cannabis businesses.

In this case, TTAB was unconvinced by applicant’s attempts to draw parallels between its oil dispenser, and razor blades or postage scales.  The TTAB found that, unlike with blades and scales, extensive evidence indicated that applicant’s identified products were primarily intended for use with schedule I drugs.  Evidence included applicant’s website and marketing of its “Bakked Dabaratus” all-in-one dabbing tool, advertised for “the perfect dose of cannabis extract.”

The TTAB also rejected applicant’s claim that the application qualified for a CSA exemption, citing the legality of cannabis under state law. The USPTO has consistently maintained that a mark must be in “lawful use” under federal law to qualify for registration. In its examination, the USPTO reviewed the company’s website and social media presence, determining the primary purpose of the products was for use with cannabis.

The USPTO further clarified that, although cannabis may be legal in certain states, federal trademark registration rights extend beyond state borders, and the products would be subject to interstate commerce regulations. The authorization of one state to legalize cannabis “cannot override the laws of the other states or federal law[…]”

Emerge’s intellectual property practice group chair, Sean Clancy, had this to say: “Although this decision is precedential, it mostly reiterates the same dated policies that USPTO has been following for years in this arena, similar to the ULTRA TRIMMER case. Brand owners can only get federal registration for federally lawful goods and services.  How they do that is heavily fact-dependent, and achievable with the right strategy but not easy.  If National Concessions Group’s marketing had not focused on cannabis, perhaps they might have enjoyed a different outcome.”  Indeed, in a footnote, TTAB noted that, “nothing in the record supports a finding that Applicant uses its marks on anything other than an apparatus used to dispense cannabis-based oils for vaping […]”

“As with everything else, cannabis businesses must exercise extra diligence and caution in developing and safeguarding their brands,” remarks trademark attorney Delia Rojas. Under the shadow of federal prohibition, brand protection remains challenging for cannabis businesses.  Careful trademark strategies should be evaluated on a case-by-case basis for each business.

Other Noteworthy News

Minnesota Governor Signs Bill Legalizing Recreational Marijuana
"Minnesota Gov. Tim Walz (D) signed a bill legalizing recreational marijuana on Tuesday, making the North Star State the 23rd in the nation to fully legalize the substance. “We’ve known for too long that prohibiting the use of cannabis hasn’t worked,” Walz said in a statement. “By legalizing adult-use cannabis, we’re expanding our economy, creating jobs, and regulating the industry to keep Minnesotans safe.” The legislation allows adults 21 and older to carry up to 2 ounces of marijuana in public and possess up to 2 pounds at home, starting Aug. 1. It will also automatically expunge low-level cannabis convictions and create a board to examine expunging or resentencing felony cannabis convictions. “Legalizing adult-use cannabis and expunging or resentencing cannabis convictions will strengthen communities,” Walz added. “This is the right move for Minnesota.” However, the bill’s sponsor, state Rep. Zach Stephenson (D-Coon Rapids), has warned it will likely take time to expunge criminal records and get licensed dispensaries up and running in the state. The Minnesota Bureau of Apprehensions has previously said the earliest it would be able to expunge all records would be by August 2024."
VA Would Study Medical Marijuana Benefits for Military Veteran’s with PTSD Under New GOP-Led Bill
"A Republican congresswoman has reintroduced a bill meant to promote research into the medical potential of marijuana for military veterans. The Veterans Cannabis Analysis, Research, and Effectiveness (CARE) Act, filed last week by Rep. Mariannette Miller-Meeks (R-IA), identical to an earlier measure she sponsored last session. That bill would require the U.S. Department of Veterans Affairs (VA) to “conduct and support research relating to the efficacy and safety of forms of cannabis” for chronic pain, post-traumatic stress disorder (PTSD) and “other conditions the Secretary determines appropriate.” The legislation specifies that the VA studies must involve plants and extracts, at least three varieties of cannabis with different concentrations of THC and CBD and “varying methods of cannabis delivery, including topical application, combustible and non-combustible inhalation, and ingestion.” VA would first have to submit a research plan to House and Senate Veterans’ Affairs Committees and make any requests to support the studies. Over the course of five years after the bill is enacted, VA would need to send annual reports on its progress to the panels."
Louisiana House of Representatives Passes Cannabis Expungement Bill
"The Louisiana House of Representatives recently passed a bill to improve the state’s expungement program for cannabis possession convictions. Rep. Delisha Boyd sponsored the bill, which passed with a 69-30 vote. “House Bill 286 is a request for a reduction in expungement fees in first offense marijuana. I’ve worked closely with the DA association, sheriffs, and the clerks, to put this bill in its proper posture,” Boyd said at the hearing on May 23. The Louisiana House Democratic Caucus recently posted on social media about the bill’s passing as well. “This bill passed the House today and will make it easier for people to get the post-conviction relief and justice they need and deserve. #LaLege #LaGov.” The bill was amended by House representatives, including the adoption of the proposed law that would only apply to 14 grams or less, and also stating that the fee would be set at a maximum of $300 for those convicted of misdemeanor offenses for cannabis possession. According to the bill, these fees will be distributed immediately to the proper channels. “The clerk shall immediately direct the collected processing fees provided…to the sheriff and the district attorney, and the processing fee amount shall be remitted immediately upon receipt in equal proportions to the office of the district attorney and the sheriff’s general fund,” the bill states."
Bill Allowing Amsterdam-Style Cannabis Cafes Passes California Assembly
"A State Assembly bill that would allow Amsterdam-style cannabis cafés where customers would be permitted to consume the tranquilizing herb onsite, received broad partisan support on Wednesday, passing the assembly 64-9. While onsite cannabis consumption is allowed in certain circumstances, AB 374 would permit the sales of non-cannabis-infused products and allow for a more inviting and coffee shop-style experience. Current law bans the sale of non-cannabis related products. […] Haney sees the bill as one that will build on California's deep roots in cannabis culture and set the state on a path to better compete with Amsterdam – a city of 1.4 million people located in the Netherlands that is also known for its cannabis culture. Amsterdam currently has over 700 cafés that permit onsite cannabis use, which rake in an estimated $1 billion annually. Haney hopes the bill will help move the cannabis industry out of a "pharmacy-like business" where customers simply pick up their supplies at a dispensary and leave, into one that is more sociable. He also hopes the bill will allow the currently struggling cannabis industry a greater opportunity to diversify its businesses and to promote tourism in downtown areas and other struggling business districts across the state."

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CannaBeat is a weekly brief on news, business, and culture in the cannabis industry curated by members of Emerge Law Group's distinguished Cannabis Industry Group.
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Emerge Shareholder Tim Alger to Speak at 2023 INCBA Cannabis Law Institute

Emerge shareholder Tim Alger is speaking at the 2023 INCBA Cannabis Law Institute at GW Law in Washington, DC.! This Friday June 9th from 10:40 to 11:40 ET, Tim will be joined by an expert panel to discuss Balancing Zealous Advocacy with the Duty of Candor – and Conscience.

Register now for a multi-day immersive educational and networking event that puts you in the room with the foremost legal practitioners who support the cannabis industry. Speakers and attendees include policy makers, politicians, and industry thought leaders from around the globe. Use code CLISPEAKER23 for 20% off your registration HERE.

Inform your legal practice with over 18 CLE accredited sessions that address key industry issues including: 

·        Interstate Commerce

·        Federal Policy

·        State Cannabis Regulation

·        International Opportunities 

·        Overcoming Operational Hurdles  

New this year, three hours specialty CLE credits. 

·        Competence, Elimination of Bias, and Ethics.

Opening CLI with plenary sessions on June 8th that features a conversation with republican and democratic congressional representatives, keynote highlighting the intersection of law, science and policy, a conversation with industry leaders on the state of the global cannabis industry, a panel presenting balancing incentives with enforcement for converting a legacy to legal industry and finishing off with INCBA’s 2nd annual summary of precedential rulings and legal trends.   

CLI is packed with networking luncheons, off-site parties, and a full reception that creates a custom-tailored experience unique to every year.  

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OLCC Set to Enact Strict Tax Compliance Rule for Cannabis Retailers This Month

Author:
Alex Berger, Attorney at Emerge Law Group

OLCC is set to enact a temporary emergency tax compliance rule for cannabis retailers at the Commission’s June 15 meeting.  This is a response to Governor Kotek’s May 16 directive to make state tax compliance a requirement for OLCC to issue or renew retail licenses, released after highly publicized revelations about cannabis licensee La Mota’s apparent tax liens and other issues.  According to a high-level source at OLCC, the rule will require all new retailer license applicants and existing retailer license renewal applicants to obtain a Tax Compliance Certification, demonstrating compliance with state tax requirements, before OLCC will approve the application.  The requirement would apply to all “applicants” under OLCC rules – typically 20% or greater direct or indirect owners and entities and individuals with direct operational control over the licensed entity.  Per the rule, “tax compliance” includes all Oregon State cannabis sales, business, payroll, and personal taxes for every “applicant,” regardless of the individual’s or entity’s role or involvement with the retailer license.

Failure of any single applicant to demonstrate tax compliance will result in “inactivation” of the application, which, for a change of ownership application, effectively means denial, and, for a renewal application, is tantamount to license cancellation.  The OLCC source indicated that application inactivation, unlike application denial, does not come with hearing rights in which an applicant can appeal the denial to an administrative law judge.  The temporary rule will likely be adopted at the June 15 Commission meeting and become effective on June 16, immediately applying to all pending and future change of ownership applications.  The rule as currently written will apply to renewal applications for licenses set to expire on or after September 15, 2023, per the OLCC source.  Despite the rule’s imminent passage, a copy of the rule has not been published and may not be available to the public until on or after the June 15 meeting.  OLCC will then enter permanent rulemaking procedures to make the rule permanent at a future date.

Emerge has serious concerns about what passage of the rule means for the already struggling cannabis industry still reeling from the La Mota revelations and facing myriad obstacles including chronic depressed prices, problematic new testing requirements, and longstanding federal taxation issues.  We’re also investigating potential legal issues with the new rule, which singles out retail licensees for disparate treatment and could penalize tax-compliant licensees based on their business partners’ personal income tax delinquency, which could be entirely unrelated to the cannabis business or the cannabis retail tax.  The lack of hearing rights for inactivations resulting from this rule is also concerning.

We will continue to closely monitor this issue and post updates accordingly.  In the meantime, please let us know if you have any questions or concerns about the forthcoming tax compliance rule or any other licensing questions.

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Exceptions to New York’s True Party Rule

Authors: Jay Purcell, Shareholder; Duncan Delano, Shareholder; Natalie Diaz, Law Clerk

New York’s True Party rules are intricate and evolving. Here, we analyze some of the concepts implicit in New York’s True Party regime and its exceptions, based on the 5/23 Proposed Regs. This analysis is based on proposed regulations; in other words, this analysis will become obsolete as soon as final regulations are promulgated (likely second half of 2023).

Additional True Party Concepts

“Control” means “expressed or reserved…power to order or direct management, operations, managers or policies.”[1]  Like the other definitions, it is capacious and lacks bright-lines. Notably, the definition of Control is silent about negative covenants; in other words, an investor without whose consent a licensee cannot do X, Y, or Z might reasonably argue that she lacks Control.

“Financial Interest” is an umbrella term[2] that means holding any form of equity or security in a licensee, including unexercised options and warrants, SAFEs, convertible notes; and, the right to compensation that exceeds 10% of a licensee’s revenue, 50% of its net profit or $250,000 annually. Financial Interest may also include the investments and compensation of a person’s parent, children, spouse and domestic partner.[3] We can’t predict the future, but the family-relations component of this definition is likely to change, because it is impossible for regulators and licensees to verify an investor’s parents’ and children’s participation in the New York cannabis industry. It is also bizarre public policy.

“Major Compensation” means 10% of a licensee’s revenue, 50% of its net profit, or $250,000 annually.

“Passive Investor” is the key exclusion from the True Party regime. A Passive Investor holds a Financial Interest that does not reach the level of a True Party, because the ownership interest does not exceed 5% of a public company licensee or 20% of a private company licensee and the ownership interest lacks Control or Influence. [4].

Plain English Meaning

  • There are exceptions to New York’s True Party Rules
  • Passive Investor means a Financial Interest not exceeding 5% of a public company and 20% of a private company, and lacking Control. Passive Investors are not True Parties.
  • True Party means holding a Financial Interest, having Control, having a right to Major Compensation, or being spouse of any of the foregoing.
    • Control means power to order or direct management, operations, managers or policies; and, serving as an officer, director, managing member, or similar role.
    • Financial Interest means holding any investment or security (including unexercised options) or holding a right to Major Compensation. Every Financial Interest is either a True Party or a Passive Investor.

 

[1] 5/23 Proposed Regs 118(28).

[2] 5/23 Proposed Regs 118(42).

[3] 5/23 Proposed Regs 118(42) (“… actual or future right to ownership…of voting stock or equity investment, or compensation …either directly or indirectly, through…, spouse, domestic partner, parent or child”)

[4]  5/23 Proposed Regs 118(76); also excluded is a less commonly occurring 10% holder in a private ROD or microbusiness.

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New York’s True Party Rule is Promiscuous

Authors: Jay Purcell, Shareholder; Duncan Delano, Shareholder; Natalie Diaz, Law Clerk

Overview. Section 80 of the New York Marijuana Regulation and Taxation Act splits the cannabis business between two so-called tiers: cultivation, processing, distribution and microbusiness (collectively “Cultivation”) on the one hand; and, on the other hand, retail, on-site consumption and delivery (collectively, “Retail”). New York prohibits an individual from participating in both Cultivation and Retail; one must choose either Retail or Cultivation, and that choice triggers a prohibition on participating in the other tier. In a perfect world, New York would promulgate clear regulations about participation; if someone does ABC, that’s enough to trigger the prohibition; and if someone does DEF, that’s not enough. New York selected for a different outcome, however, and in three different rulemaking proposals, New York mumbled.

True Party Defined. Instead of definitions, New York offers multi-step examples, with multi-step exclusions. The output, a “True Party in Interest,” is defined in the 5/11/23 proposed regulations at Section 118(105) (the “Proposed Regs”). Simply, a “True Party” is someone forbidden from participating in one tier, because of her involvement in another. In offering examples of True Parties, but not definitions, New York intends for the True Party label to reach a sea of unsuspecting cannabis market participants (and their spouses). In evaluating these proposed regulations, that’s the first key takeaway: New York’s True Party rules are promiscuous.

Put differently, by attaching the label to meagre and major actors, the True Party rule is loose. All of the following are True Parties: a small investor on the Board of Directors; contractors earning over $250,000; persons with “unexpressed” power; LPs, GPs, and all their spouses. We note that the Proposed Regs are not yet final and we predict New York will amend the definition of “True Party” many times in the future. For now, it’s useful to conceptualize True Party as one of four persons:

  1. A large investor in a licensee (more than 5% of a public company or more than 20% of a non-public company[1]); and, everyone with equity in the large investor[2];
  2. Someone entitled to large sums of money (10% of a licensee’s gross revenue; 50% of its net profit, or $250,000 annually);[3]
  3. Someone with power: managers, officers and directors, and people who may exercise control, or direct the management, managers or policies of a licensee[4]
  4. Someone who guarantees a licensee’s debts[5]

Key Exception. New York’s exceptions are muddled, too.[6] The key exception is the “Passive Investor,” someone holding, at most, 5% of a public company’s equity, 10% of a private ROD or microbusinesses’ equity, or 20% of a private licensee’s equity; and lacking control or influence.[7]  [More on the Passive Investor exclusion here]

Summary

  • Being labeled a True Party in one Tier (Cultivation or Retail) triggers complete prohibition on any participation in another Tier[8]
  • New York applies the True Party label promiscuously. Albany’s goal is applying the label as often as possible because this definition triggers investment caps.
  • To retain power, New York’s rules are poorly drafted on purpose.
  • New York will face challenges in collecting, storing and using all the information it demands licensees provide (especially regarding families)
  • The 5/23 Proposed Regs are not final. Whatever happens next, OCB will amend Section 118 again.
  • Despite inevitable amendments, plan on New York continuing promiscuity for the True Party concept

Note to readers: this analysis is based on proposed regulations; in other words, this analysis will become obsolete as soon as final regulations are promulgated (likely second half of 2023).

Next: Read About Exceptions to New York’s True Party Rule

 

[1] 5/23 Proposed Regs 118(76)

[2] 5/23 Proposed Regs 118(105)(i)(b)-(c)

[3]  5/23 Proposed Regs 118(105)(i)(d) (landlords are excepted at 105((ii)(a))

[4] 5/23 Proposed Regs 118(105)(i)(a), (f), (i)

[5] 5/23 Proposed Regs 118(105)(i)(g)

[6] Regulators provide eight examples of non-True Parties. These are persons for whom the licensee is a minor part of its overall business activity: a real estate broker, a landlord, a branding or staffing agency, a bank, a passive investor, a consultant; and, someone with a right to receive smaller sums of money (a bonus or commission that doesn’t exceed 10% of a licensee’s gross revenue; consultants earning less than 10% of gross revenue, 50% of net profit, or $250,000 annually (5/23 Proposed Regs 118(ii)(b),(d),(e)).

[7] 5/23 Proposed Regs 118(76).

[8] See 5/23 Proposed Regs 123.3(f); 123.5(i); 123.9(j)

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PsychedeLinks – May 26, 2023

PsychedeLinks is a curated selection of top news stories impacting business, research, and culture in the psychedelics ecosystem, crafted by Emerge Law Group’s groundbreaking Psychedelics Group.

 Emerge’s Hot Take

Synaptic Training Institute Won’t Open Psilocybin Service Center Because of “Cumbersome Process”
Synaptic Institute Inc., a facilitator training program based out of PDX, has halted plans to add a service center. Synaptic’s founder cited the “cumbersome” nature of licensing and running a service center as the primary driver for the decision. This statement echoes previously expressed concerns within Oregon’s psilocybin industry, largely prompted by the unique regulatory challenges faced by service centers as opposed to regulations for facilitators and facilitator training programs. Compounding these concerns are questions of tax and insurance liability, the required separation from other professional licenses, and a generally high cost of business. With only 3 service centers currently licensed in the state of Oregon, there is understandable concern among prospective psilocybin business owners that the state will see a surge of newly trained and licensed facilitators with little access to space in which to practice their craft. We are however in the very early days of the psilocybin industry, and a moderate surge in all licenses is anticipated throughout the year.

“Understandably, many prospective business owners in this space are coming to terms with the reality of start-up costs,” says Emerge attorney Kaci Hohmann. “There has been a lot of discussion in the community about Internal revenue Code 280E, high regulatory costs, and unaffordable or unavailable insurance coverage. As more prospective business owners get really serious about their business plans, they should consult with an attorney and CPA who can oftentimes find creative solutions to help mitigate the impact of these barriers.”

 Other Noteworthy News

Salem, Massachusetts Lawmakers Vote to Decriminalize Psilocybin Mushrooms
“Salem, Massachusetts lawmakers have approved a resolution to decriminalize psilocybin mushrooms. Members of the City Council voted unanimously on Thursday [5/11/23] to pass an activist-led measure making it the local government’s official policy to deprioritize enforcement of laws prohibiting the possession and cultivation of psilocybin. This is the latest Massachusetts city to enact some form of psychedelics decriminalization as the national reform movement continues to expand, though it is the only one to focus on psilocybin alone. Other cities that have taken broader psychedelics action include Somerville, Cambridge, Easthampton and Northampton. The local measure doesn’t remove criminal penalties for the substance, but it states that the “arrest of adult persons for using or possessing psilocybin-containing fungi” as well as the “investigation and arrest of adult persons for cultivating, purchasing, transporting, distributing, engaging in practices with, and/or possessing psilocybin-containing fungi” should be “amongst the lowest law enforcement priority for the city of Salem.” The resolution says that “no City of Salem department, agency, board, commission, officer or employee of the city should use city funds or resources to assist in the enforcement of laws imposing criminal penalties for the use and possession of psilocybin-containing fungi by adults.”
State to Fund Clinical Trials on "Whole Mushroom" Psilocybin Research
“Arizona will soon award $5 million in grants for researchers to conduct clinical studies on hallucinogenic psilocybin mushrooms. The recently approved budget for fiscal year 2024 includes a competitive grant program overseen by the Arizona Department of Health Services (ADHS). Grant recipients will conduct clinical trials to study the effects of "whole mushroom psilocybin" on post-traumatic stress disorder, long COVID symptoms, depression, anxiety, chronic pain and other maladies. Trials must prioritize veterans, first responders, frontline health care workers and people from underserved communities. It's unclear when ADHS will begin accepting applications or how large the grants will be, but the budget requires that grants be awarded by Feb. 1 each year.”
Psychiatrist to Lead State-Mandated Psilocybin Trial
“UW Medicine will facilitate a small-scale study to explore the potential benefit of psychedelic mushrooms with psychotherapy. In early May, Washington Gov. Jay Inslee signed Senate Bill 5263 governing recreational and medical use of psilocybin. The new law mandates that the University of Washington School of Medicine facilitate a study to explore the potential therapeutic value of the psychedelic compound found in mushrooms. “The big benchmark in the bill says that we need to start (treating) people Jan. 1, 2025. We have about a year and a half to get all the infrastructure developed,” said addiction psychiatrist Dr. Nathan Sackett, who will oversee the trial. He’s an acting assistant professor of psychiatry and behavioral sciences. Sackett said the Seattle-based trial will include 30 to 40 military veterans and first-responders who have documented problems with post-traumatic stress and alcohol use disorders, which are often linked. Participants will likely be recruited through community groups who already work with prospective participants.”
VIDEO: Touring Oregon's First Licensed Psilocybin Lab
“It's been two years in the making, but Oregon now has the supply chain for legal psilocybin therapy complete from cap to stem. That means that the state has licensed at least one "magic mushroom" grower, a lab to test the product, facilitators to administer the psilocybin to clients and a service center to do it in. Recently, The Story got a chance to tour Rose City Laboratories, which is the first lab licensed in Oregon to test psilocybin. They walked [KGW8] through the process that happens before psilocybin gets sent out to service centers for clients to take in controlled "trips."
L.A. Dispensaries Openly Sell ‘Magic Mushrooms’ as State Weighs Decriminalization
“As the state Legislature considers a bill to decriminalize several psychedelics including psilocybin, some L.A.-area businesses are openly selling the potent hallucinogen. Although cannabis is legal statewide, no Southern California municipality or county has followed the lead of Oakland, San Francisco and Santa Cruz by decriminalizing magic mushrooms. Yet there’s a thriving market for the fungi and other psychedelics in L.A. Entrepreneurs have long taken advantage of the relative scarcity and high demand by selling them illegally, in gleaming storefronts and in parking lots. The L.A. County Sheriff’s Department served about 50 search warrants at dispensaries selling magic mushrooms in the last six months alone. Meanwhile, there’s growing support for legalizing or decriminalizing psilocybin and other hallucinogens among psychologists, researchers, veterans’ advocates and others who’ve witnessed mental health turnarounds after psychedelic treatment. As evidence of their therapeutic benefits grows and states including Oregon and Colorado legalize or decriminalize magic mushrooms, some Democrats in Sacramento are pushing to make a similar change in California.”

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Redlining New York’s May 2023 Proposed Regs

Authors: Jay Purcell, Shareholder; Duncan Delano, Shareholder; Natalie Diaz, Law Clerk

At a meeting on May 11, 2023, the New York Cannabis Control Board circulated new proposed regulations, for Sections 118, 119, 120, 121, 123, 124, 125 and 131 (5/23 Proposed Regs). The May proposals are updates to regulations proposed in December 2022 (12/22 Proposed Regs). Unfortunately, New York did not circulate a redline showing what’s revised in the proposals. Here’s the redline (Redline May-23 x Dec-22).

There are some major updates in here, especially On-Site Consumption; Goods/Services Agreements, Undue Influence, and Municipal Regs. We’ll circulate an analysis of the Proposed Regs shortly.

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CannaBeat – May 19, 2023

CannaBeat is a curated biweekly selection of top news stories impacting business, research, and culture in the cannabis industry, crafted by Emerge Law Group.

Emerge’s Hot Take

Regulators and Advocates Discuss Next Steps for Marijuana Interstate Commerce

It’s been almost 30 years since California legalized medical cannabis, and since then 40 states and the District of Columbia have some form of cannabis legalization (medical, recreational, or both). The Federal government continues to slowly work its way through which approach to take – full decriminalization versus legalization; and then in the meantime work on social equity and providing banking access. Certain states are making moves to prepare for the next step of the industry – interstate commerce. Each of the three West Coast states – California, Oregon, and Washington – have enacted legislation to allow for interstate commerce contingent on the U.S. government legalizing cannabis or allowing for such transactions without federal interference.

The restriction on the cannabis market to stay within state lines has been especially hard on the west coast states that are known for their cannabis and cannabis products. General Counsel for the Department of Cannabis Control in California said “that restricting marijuana markets within state lines is economically unattainable.” He further describes how the situation is analogous to other industries,

“If the Michigan auto industry could only sell cars to people in Michigan, or Florida orange growers could only sell oranges to people in Florida or if the California wine industry could only sell wine to California, I’m not sure that each of those would be a viable legal industry.”

It’s likely that the aforementioned products would not be known as absolute staples in their specific industry if restricted in such a way that most consumers didn’t have access to the specific products from that region. It could be argued that the Emerald Triangle is known as a place for top shelf artisanal cannabis because prior to legalization the product was able to reach a broader consumer market. The Federal government is dragging their feet on this issue but States are not waiting, and rather working to bring the industry in to the next phase, the next era of the legal cannabis market.

Other Noteworthy News

U.S. Senate Committee Holds Marijuana Banking Hearing
"A key U.S. Senate committee convened on Thursday to discuss marijuana banking issues and bipartisan legislation that seeks to resolve the industry’s unique financial challenges. Members of the Senate Banking Committee didn’t take any votes at the hearing, which was titled “Examining Cannabis Banking Challenges of Small Businesses and Workers,” but a focal point was the Secure and Fair Enforcement (SAFE) Banking Act. ens. Jeff Merkley (D-OR) and Steve Daines (R-MT) refiled the measure last month, and they were among those who testified at the committee hearing. Other witnesses included representatives of the Cannabis Regulators of Color Coalition (CRCC), United Food and Commercial Workers International Union (UFCW), Dama Financial and Smart Approaches To Marijuana (SAM). “The cannabis landscape looks far different than it did a few short years ago,” Banking Committee Chairman Sherrod Brown (D-OH) said in opening remarks. “Cannabis has been legalized or decriminalized in almost every state. States and localities have established licensing and social equity programs to ensure that small businesses and communities impacted by the War on Drugs are part of the growing legal cannabis industry.” …
Minnesota Legislature Reaches Deal on Legalized Recreational Cannabis, Vote Likely in Final Days of Session
"Key negotiators working on legislation to legalize recreational cannabis for adults 21 and older in Minnesota reached a final deal Tuesday, teeing up a vote in the House and Senate in the last few days of the session. "This has been a huge team effort through the legislature and the state of Minnesota," said Sen. Lindsey Port, DFL-Burnsville, who is carrying the bill in that chamber. "Hopefully, we have a final conference committee report for you in the next day or two. Representative Stephenson and I remain absolutely committed to getting this bill passed this year." The legislation is the culmination of 30 committees, hours of testimony and several changes to the bill over the course of this legislative session. The final deal will legalize weed for recreational use, but also allow for new state-licensed businesses that will grow, manufacture and sell at retail dispensaries marijuana products. Port said the deal is "locked," after Tuesday's conference committee with no additional changes. When the compromise bill gets to the floor, it's an up-or-down vote. No further amendments can be added."
Up In Smoke: USPTO Leaves Cannabis-Related Trademark Applications in Ashes
"After years of uncertainty, the USPTO has finally provided insight on how it views applications for cannabis-related marks, suggesting that the use of such marks will be heavily scrutinized. In 2016, National Concession Group, Inc. (NCG) filed an application to register the mark “BAKKED” (Serial No. 87168058) and this stylized drop design mark. (Serial No. 87183434) for goods and services related to glass jars and essential oil dispensers. In support, NCG submitted a specimen displaying the respective marks on a device called “The Dabaratus,” which is commonly used for dispersing cannabis oil. The examiner refused registration because the identified goods (The Dabaratus) were prohibited under Section 863 of the Controlled Substance Act (CSA), and thus could not be used in commerce as required by Sections 1 and 45 of the Trademark Act. On appeal to the TTAB, NCG argued that in addition to dispersing cannabis oil, the device could also be used for dispersing essential oils and, therefore, did not constitute paraphernalia under the CSA. Alternatively, NCG argued that even if it is considered paraphernalia under the CSA, the item was lawful under Colorado state law and registration was proper under Sections 863(f)(1) and 863(f)(2) of the CSA…"
Emerald Cup 2023 Makes Jubilant Return to NorCal
"The diverse California cannabis culture is deeply rooted in legacy and tradition. For generations, cultivators, breeders, and product makers throughout the state have worked to continually raise the bar for what the plant can do. Nowhere is this more evident than at the Emerald Cup. A celebration of innovation, community, and of course, great weed, the Emerald Cup honors the best and brightest from across the California industry. From sun-grown flower to edibles, concentrates to pre-rolls, retailers to social justice warriors—and everything in between—the Emerald Cup is often referred to as the “Academy Awards of Cannabis” thanks to its revered status and highly sought-after trophies. Now in its 19th year, the storied cannabis contest held its awards last weekend overlooking the San Francisco Bay at the Craneway Pavilion in Richmond. Emerald Cup 2023 was one for the ages, featuring a red-carpet entry, live music, the always fun Guild Extracts boat offering multiple cruises throughout the all-night soiree, and of course, the awards show itself. Hundreds of contestants, judges, sponsors, press, and other esteemed guests gathered from dusk ‘til dawn for a night of jubilant revelry—and a nonstop sesh."

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CannaBeat is a weekly brief on news, business, and culture in the cannabis industry curated by members of Emerge Law Group's distinguished Cannabis Industry Group.
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PsychedeLinks – May 12, 2023

PsychedeLinks is a curated selection of top news stories impacting business, research, and culture in the psychedelics ecosystem, crafted by Emerge Law Group’s groundbreaking Psychedelics Group.

 Emerge’s Hot Take

Oregon Approves First Psilocybin Service Center License
Nearly three years after voters approved Measure 109, which made Oregon the first state in the country to legalize psilocybin, on Friday the Oregon Psilocybin Services section issued the first service center license - to EPIC Healing Eugene, owned by Cathy Jonas. Once licensed, service centers can employ and/or contract with licensed facilitators who are trained in providing preparation, administration, and integration sessions to clients. Service centers will sell psilocybin products that were produced by licensed manufacturers and tested by licensed laboratories. Clients 21 years of age or older may access psilocybin services, and while they won’t need prescriptions or referrals from healthcare providers, they must first complete a preparation session with a licensed facilitator.

If they meet the criteria to move forward, they may participate in an administration session at a licensed service center, where they may consume psilocybin products in the presence of a trained and licensed facilitator.

“Oregon has now issued at least one Service Center, Manufacturer, Laboratory, and Facilitator license, and almost 100 worker permits, all of the license types under the newly created program. While the process was not free from controversy, this approval represents the culmination of years of cooperative work by government, businesses, and the public,” said Emerge’s Matt Brockmeier. “It’s also instructive as other states, like Colorado, are also creating similar regulatory schemes. Psychedelic decriminalization efforts are gaining momentum around the country, and states like Oregon and soon Colorado can provide a helpful model for other states.”

 Other Noteworthy News

Ohio State Receives DEA license to Grow Psychedelic Mushrooms for Research
“The DEA has issued a license to Ohio State University that will allow the school to legally cultivate psilocybin mushrooms. This is reported to be the first such license issued to a university research center, and will allow Ohio State and its partner, Inner State, to cultivate psilocybin mushrooms for research purposes only. This development comes after the Center for Psychedelic Drug Research and Education (CPDRE) Directed by Assistant Professor of Social Work Alan Davis was established at Ohio State last year.

All research will be conducted in a federally sanctioned and secured grow house in accordance with strict DEA regulations and guidelines. “By combining cutting-edge techniques in genomics and metabolomics, we have the opportunity to obtain a high-resolution picture of the chemical diversity of mushrooms that have remained difficult to study for several decades,” according to Ohio State researchers Dr. Jason Slot and Dr. Kou-San Ju.”
Temporary Extension of COVID-19 Telemedicine Flexibilities for Prescription of Controlled Medications
“On May 10, DEA issued a new regulation temporarily extending waivers used during the COVID Public Health Emergency (PHE) to ensure patients did not experience lapses in care, and to ensure continuity of care under the current telehealth flexibilities. Under the Ryan Haight Online Pharmacy Consumer Protection Act of 2008, a practitioner was required to conduct at least one in-person medical evaluation of the patient before prescribing a controlled substance by means of the “Internet” (a broadly defined term that includes telemedicine). The Ryan Haight Act contains seven “practice of telemedicine” exceptions to the in-person medical evaluation requirement, one of which was used by DEA to extend COVID-19 PHE DEA telemedicine flexibilities through November 11, 2023. This additional time is intended to allow patients, practitioners, pharmacists, service providers, and other stakeholders sufficient time to prepare for the implementation of any future regulations that apply to prescribing of controlled medications via telemedicine. It will also give DEA time to review and respond to the 38,369 comments they received in response to the two notices of proposed rulemaking and to conduct a thorough evaluation of regulatory alternatives in terms of telehealth rules.”
Kaya, Jamaican Cannabis Operator, Introduces Psychedelic Mushroom Chocolate
“Kaya announced today its Kaya Extracts subsidiary plans to expand its product offerings in Jamaica's legal psilocybin market by introducing two new SKUs of Psychedelic Mushroom Chocolate. Kaya will sell its Psychedelic Mushroom Chocolate in a flat bar that contains 1000mg of psilocybin per bar that can be broken into four equal-sized pieces containing 250mg of psilocybin per square. Each square can be divided into smaller, fractional pieces for a scheduled psilocybin microdose routine. Kaya Group ("Kaya") also recently announced plans to expand its already profitable Jamaican operations. Jamaica is emerging as a destination for psychedelic travelers, as Jamaica does not have any regulations on the cultivation of psilocybin mushrooms at the moment.”

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PsychedeLinks is a curated selection of top news stories impacting business, research, and culture in the psychedelics ecosystem, crafted by Emerge Law Group’s groundbreaking Psychedelics Group.
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FRANCHISE LAW

Franchisors

Franchise law is a heavily regulated area of law.  We help clients expand their businesses through franchising and other distribution methods. We have experience in many industries including, restaurants, health, and beauty, alcohol, and cannabis among others. Our representative services include the following:

Franchisees

We also help potential franchisees interested in buying a franchise. We are able to assist with evaluation of franchise opportunities with respect to:

Alternative Structures

However, not all businesses are suited to franchise. We are also experienced with helping clients structure alternative distribution methods to prevent classification as a franchise.

MERGERS AND ACQUISITIONS

Our M&A attorneys are highly experienced in counseling clients who are considering acquisitions or exit strategies.  We have many years of experience handling deals of various types and sizes, ranging from sales of small closely-held business, private companies, and publicly-traded corporations.  We have represented business owners, private equity firms and investment banks in a wide range of industries. 

We have a deep business bench, and Emerge attorneys have handled transactions of all shapes and sizes.  Whether your deal is valued at $100,000 or $100,000,000, our experienced attorneys will guide you through the deal process.

We understand the intensity, technical skill and judgment needed to get deals done, and we provide our clients with timely, practical and cost-effective legal advice.  We are highly capable in all aspects of M&A, including the following:

CANNABIS INDUSTRY

Emerge Law Group is highly experienced in the cannabis industry.  We have helped many clients obtain state licenses and local permits to operate cannabis businesses throughout California, Oregon, and Washington.

Emerge attorneys were instrumental in the drafting and passage of Oregon Measure 91, legalizing marijuana in the State of Oregon, and have represented cannabis businesses well before many law firms were willing to enter the cannabis industry. As a firm that has provided legal services in the cannabis space for many years, we are familiar with the unique and complex issues businesses and individuals face in an emerging and highly regulated industry.

We regularly help clients with:

Cannabis laws and rules are also regularly changing.  Members of our team are dedicated to attending legislative hearings, state agency and local city and county meetings to stay up-to-date on any new changes and how to adjust to any new changes.

See our Cannabis Industry page for more information.

PSYCHEDELICS

There is tremendous excitement about the potential for psychedelic drugs to benefit a wide variety of populations, including terminally ill patients suffering with anxiety and depression. Until recently, psychedelic substances have been accessible only in the illicit market and are illegal under federal and state to manufacture, distribute, or possess. These substances have, since 1970, been treated as having no legitimate medical use, and no commercial application. As such, no one invested in this area or required legal services, outside of the criminal context.

Today, researchers in a multitude of clinical studies are proving the medical safety and efficacy of these medicines, with the objective of changing the treatment of these substances under the Controlled Substances Act. Companies are now actively raising money to develop intellectual property and seize market opportunities associated with psychedelic drugs.

In addition, advocates at the state and local levels are not waiting for the rescheduling of these substances and are active in undertaking efforts to decriminalize these substances and/or make them affirmatively legal under state and/or municipal law. Decriminalization already has occurred in cities including Denver, Oakland, Santa Cruz, and Ann Arbor. Oregon is poised to be the first state to make psilocybin therapy affirmatively legal. Emerge Law Group is working with a wide array of clients pushing forward in this emerging area.

See our Psychedelics Practice Group page for more information.

TAXATION

CORPORATE AND PARTNERSHIP TAX

Businesses of all kinds benefit from a customized but systematic approach to structuring legal relationships. Emerge Law Group helps businesses and business owners with a variety of tax planning matters.

Representative client services include:

ESTATE PLANNING

Estate planning encompasses everything from a will and power of attorney to combined estate and business succession planning. In almost all cases, the purpose of the plan is to help the client protect those they care about most in the event they can no longer be there for them.

Emerge Law Group has experience with a wide range of tools used in estate planning, including wills, trusts, and family business entity planning.

TAX CONTROVERSIES

Emerge Law Group can assist with the resolution of difficult tax controversies. Our areas of emphasis and experience include:

REAL ESTATE TRANSACTIONS

Emerge Law Group assists clients with a wide range of real estate transactional matters.  We regularly help clients with:

LAND USE

Emerge Law Group also assists clients with all aspects of local government land use and development processes, ranging from preliminary property analyses and building permit issues to complex land use reviews and hearings. Our attorneys are experienced in obtaining land use entitlements and development permits for a wide range of uses.

We regularly help clients with:

Above all, we understand the value of working with cities and counties to enhance communities while developing the land to its potential. We strive to create solutions to land use issues that serve to better our clients and the communities in which they live and work.

LITIGATION AND ALTERNATIVE DISPUTE RESOLUTION

The attorneys in Emerge Law Group’s Litigation and Alternative Dispute Resolution practice group litigate commercial, intellectual property, and public interest matters in state and federal courts, as well as private mediation and arbitration proceedings.  Our lawyers have represented national and regional financial institutions, major media, entertainment and technology companies, and other Fortune 500 companies in a broad array of high-stakes disputes.  Our team of litigators has handled leading cases that have shaped the law in cutting-edge business, technology, free speech, and public interest impact lawsuits in trial and the courts of appeal.

We have particular expertise in handling civil litigation and regulatory enforcement matters in the cannabis and psychedelic industries.  While many firms claim expertise in the these industries, few have our depth of experience successfully litigating contract, trademark, partnership, shareholder, land use, and real estate disputes in court and arbitration.  Even fewer firms have our level of experience handling writ of mandate proceedings against the government regulators.

Our litigators practice in California, Oregon, and Washington, but have appeared in state and federal courts nationwide.  Our knowledge of our clients’ businesses, goals and concerns, and our experience litigating at the highest levels, give us unique insight into possible outcomes and pitfalls as we continuously confront issues of new impression.

No matter what the industry, we pride ourselves in achieving our clients’ objectives through efficient and creative solutions primarily designed to avoid disputes in the first place—which is always the best litigation strategy.  Many times, our clients obtain excellent outcomes before or at the earliest stages of litigation because our adversaries quickly recognize the challenges they will face in litigating against us.  When litigation is unavoidable, however, we work hard to provide our clients with both cost-efficient and “big firm” quality representation.

 

INTELLECTUAL PROPERTY

Your intellectual property (or “IP”) strategy can harness your most valuable information and intangible assets including your name, your brand, your designs, your content, your services, and your products — what makes your business stand apart in a competitive world.  We can help you evaluate and build your IP portfolio, then secure it, monetize it, and protect it.

IP encompasses multiple areas of law and different types of information or material.

Our Intellectual Property practice focuses on:

TRADEMARK

Trademarks include names, signs, logos, designs, phrases, slogans, expressions, and sometimes even colors, sounds, or smells that identify or distinguish one business compared to others.  Trademark protection is fundamental in securing your “brand.”

COPYRIGHT

Copyright covers original works of creative authorship fixed in a tangible medium of expression.  This includes literary, dramatic, musical, and artistic works, such as poetry, novels, designs, movies, songs, computer software, and architecture. Copyright does not protect facts, ideas, systems, or methods of operation, although it may protect the way these things are expressed.  Depending upon the type of work, “moral rights” (such as the right of attribution) may be implicated as well.

TRADE SECRET

Trade secret laws can vary somewhat between states, but generally trade secrets cover information, including drawings, cost data, customer lists, formulas, recipes, patterns, compilations, programs, devices, methods, techniques or processes that derive economic value from not being generally known and are the subject of efforts that are “reasonable under the circumstances” to maintain secrecy.

PRIVACY

Depending upon where you live or operate, there is a special patchwork of laws and regulations that protect and regulate personal information.  If you are handling or giving out personal or potentially sensitive information, you may be implicating privacy laws.

PUBLICITY

Publicity rights address the commercial use of an individual’s face, name, image, or likeness.  These rights vary state-to-state.  Marilyn Monroe, for example, lived in multiple states which created complex questions about her publicity rights.

Our Intellectual Property services include:

FINANCIAL INSTITUTIONS

In states where new cannabis banking opportunities exist, Emerge Law Group has the proven expertise in creating canna-banking programs to efficiently capitalize on those opportunities. Our Banking Practice Group specializes in working with banks and credit unions to develop regulatory compliant programs and operational best practices. We also train banking staff to become experts in canna-banking so they can effective understand and manage the risk affiliated with canna-banking.

We regularly help clients with:

EMPLOYMENT LAW

At Emerge Law Group, we recognize that employees are the heart and soul of any successful business.  Our Employment Law Practice Group works with employers to help them effectively manage their workforce, navigate the complex web of federal, state and local employment laws and, if necessary, defend against claims before administrative agencies and in court.

We regularly help clients with:

CORPORATE FINANCE AND SECURITIES

Our corporate finance and securities lawyers are experienced attorneys who have practiced at large law firms, worked as in-house counsel for public companies and investment banks, and owned and operated start-up companies. We work with clients to help achieve their financing goals while safely navigating the highly technical securities law landscape. 

In addition to representing issuers, we also routinely represent institutional and individual investors, including in connection with fund formation and investments.

Our expertise includes:

We have a deep understanding of the financing options available to businesses, including simple unsecured loans, asset-backed financing, convertible debt, common and preferred equity, crowdfunding and various other structures.  We work closely with our clients to understand their business and financing needs, ensure they are prepared to approach investors and choose the right partners, structure and negotiate terms, navigate the due diligence process and successfully close the deal.

COMPLIANCE AND LICENSING

ALCOHOL AND BEVERAGE INDUSTRY

Emerge attorneys have represented businesses in the alcohol and beverage industry, including wineries, breweries, distilleries, restaurants, bars, movie theaters, golf courses, and gas stations.  We can help you vet new locations, acquire existing locations, and apply for the appropriate liquor license.  We also provide training to comply with applicable rules and regulations, prepare operating procedures, submit renewals, and keep clients protected in the event of any potential violations or administrative hearings.

CANNABIS INDUSTRY

Emerge Law Group is highly experienced in the cannabis industry.  We have helped many clients obtain state licenses and local permits to operate cannabis businesses throughout California, Oregon, and Washington.  We regularly help clients with:

Cannabis laws and rules are also regularly changing.  Members of our team are dedicated to attending legislative hearings, state agency and local city and county meetings to stay up-to-date on any new changes and how to adjust to any new changes.

See our Cannabis Industry page for more information.

PSYCHEDELICS INDUSTRY

Emerge Law Group is a leader in the psychedelics industry.  There is tremendous excitement about the potential for psychedelic drugs to benefit a wide variety of populations, including veterans struggling with PTSD and terminally ill patients suffering with anxiety and depression.  Until recently, psychedelic substances have been accessible only in the underground; they are illegal under state and federal law to manufacture, distribute, or possess.  These substances have, since 1970, been treated as having no legitimate medical use, and no commercial application.  As such, businesses have not invested in this area or required legal services, outside of the criminal context.

Today, psychedelics are proceeding toward legalization on multiple paths.  Researchers in a multitude of clinical studies are proving the medical safety and efficacy of these medicines, with the objective of changing the treatment of these substances under the federal Controlled Substances Act, opening legal access to them.  Private and public companies are now actively raising money to develop intellectual property and capitalize on the market opportunities associated with psychedelic drugs.  Opportunities to be early actors in this new arena are tremendous.

See our Psychedelics Practice Group page for more information.

BUSINESS AND CORPORATE

Our business transactions team is made up of highly experienced transactional attorneys who have practiced at large law and accounting firms, worked as in-house counsel for public companies and investment banks, and owned and operated start-up companies. We understand complex legal matters and provide high quality legal services in a cost-effective manner.  Our clients value our experience, knowledge and judgment.

ENTITY FORMATION

Our team routinely advises clients regarding:

CORPORATE GOVERNANCE

Emerge attorneys also advise on-going concerns with: