Medical marijuana has been legal in Nevada since 2000, but with its legalization came a robust set of rules and regulations. Initially, no more than 9.99% of a marijuana establishment could be transferred in any given year. Then in late 2015, the Nevada Legislature approved a bill that allows for the transfer ownership of all of the ownership of a medical marijuana establishment or establishment certificate (and later recreational marijuana establishments). Due to the unique nature of the marijuana industry, the sale of a marijuana business involves various restrictions that are simply not present in a “normal” business transaction. Even if you are only selling a part of a marijuana business, you are subject to complex state and local rules regarding transfers of ownership in a marijuana establishment. Your transaction is not complete until you have all the necessary government approvals.
Because Nevada’s laws and regulations surrounding marijuana are so complex, having an attorney who understands the rules and regulations is critical to any transaction involving a marijuana establishment, even if you are only selling a small portion of the ownership in the company that holds the marijuana establishment certificate. If you’re interested in buying or selling a business that holds a marijuana establishment certificate, or just the license itself, the attorneys at Connor & Connor PLLC can assist you with the process.
State and Local Laws Will Influence Your Transaction
One of the issues that makes medical marijuana establishment laws so complicated is that Nevada provides cities and counties a great deal of authority in regulating marijuana establishments in their jurisdiction. Each individual jurisdiction’s rules and regulations can greatly influence how the transaction should be organized. Unlike the sale of most businesses, marijuana establishment transactions can stretch on for months in order to comply with background checks, state approval, and local licensing requirements. Your purchase-sale agreement and other transactional documents must take these rules and regulations into consideration before you can effectuate the transfer or else the whole deal will be put at risk.
Buying or Selling a Marijuana Establishment with an Experienced Attorney
The attorneys at Connor & Connor PLLC has assisted many of their clients with several high-level marijuana business sales. Our attorneys have assisted our clients with complete transfers, partial sales, partnership and licensing agreements, and other various investments in marijuana businesses. Our experience will help you and your partners navigate Nevada’s complex marijuana laws to ensure that your transaction goes as smoothly and safely as possible.
Contact us today to set up an appointment where we can help you start the process of buying or selling a marijuana establishment. Also, please don’t forget to visit our website for a brief overview of the various laws that govern the cultivation, buying and selling of marijuana in Nevada.