In some states, dispensary applicants must be considered of "good moral character" in order to receive a license to operate a cannabis business. Unfortunately, it’s often unclear what this phrase means in practice, who it applies to, and what the consequences are for an applicant.
Read MoreReal estate is an attractive opportunity for investors who want to be involved in the legal cannabis industry without operating a dispensary or grow facility themselves. This is partly because identifying locations that meet the needs of these businesses and also pass zoning and regulatory scrutiny is a major headache for operators. The unique challenges – and high costs – of finding viable locations for cannabis businesses lead to some unusual arrangements between landlords and tenants, and these arrangements pose their own risks to each side.
Read MoreKey person risk is especially prevalent in the cannabis industry because experienced managers are rare, and licenses to operate are issued to specific groups of individuals.
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