Overview
The Hedge Fund Law Report quoted Scott Fisher in an article titled "Investing in Cannabis: Structuring Investments, Due Diligence, Offering Documents and the BSA." The article, the second in a four-part series, analyzes cannabis deal structures, ways managers should perform due diligence investments, disclosures managers should include in offering documents and anti-money laundering concerns.
Fisher explains that any entity that makes cannabis investments across state lines or in a way that implicates the federal banking systems is subject to scrutiny. "Private equity (PE) firms are uniquely situated to invest in cannabis because, unlike banks, they are not subject to the same regulations and thus have greater flexibility to invest," he says. "If a PE firm can structure an intrastate investment that comports with the legal cannabis framework within that state, then it will likely be in good standing. PE firms, however, typically operate more broadly, so it is easier said than done."
The full article can be read at the Hedge Fund Law Report (subscription required).
