Cannabis Industry
Tonkon Torp helps clients solve complex business problems within the regulated marijuana, hemp, and CBD industry. The attorneys in the Cannabis Industry Group bring a combination of deep business expertise and cannabis-specific knowledge and experience to help owners and operators form and sustain successful businesses in this emerging category.
 
Our Cannabis Industry Group is a full service practice that works with entrepreneurs and companies of all sizes and at all life cycle stages. We work to identify strategies and solutions to help our clients achieve financial and structural growth, all while keeping a keen eye on the special risks and liability considerations inherent to a newly regulated industry.
 
Visit our Cannabis Industry Legal Services page for more information about our cannabis industry expertise.

Tonkon Torp Wins Arbitration for Cannabis Farm Manager

Tonkon Torp has secured an award of $647k for a cannabis farm management company based on its work in 2017. 2017 was the first year a large number of outdoor cannabis farms were licensed by the OLCC. This combined with favorable weather conditions resulted in a record bumper crop, and the wholesale price of sungrown cannabis dropped by more than half.

Successful Business Exit Through Stock Sale

Advised and represented the owners of a hemp processing business in the sale of all issued and outstanding shares of the company to a buyer looking to acquire the operations of the business and related branding.

Sale of Form Factory, Inc.

Tonkon Torp represented its client, Form Factory, Inc., a retail cannabis processor, in all aspects of its sale to Acreage Holdings, Inc., a publicly traded company in Canada, in an all-stock merger transaction valued at $160 million. The transaction was extremely complicated and included Oregon Liquor Control Commission licensing and other regulatory issues, complicated Delaware statutory structures, Canadian securities law considerations, complex subsidiary ownership and joint ventures, and numerous third parties.

Reverse Takeover of Grown Rogue International, Inc.

Tonkon Torp represented its client, Grown Rogue Unlimited, LLC, a vertically integrated cannabis brand, in its reverse takeover of Novicius Corp. (now known as Grown Rogue International, Inc.), a publicly traded company in Canada. Tonkon Torp advised Grown Rogue on Oregon and United States matters pertaining to the transaction, including tax, securities laws, corporate governance, and Oregon Liquor Control Commission licensing and approval processes. Tonkon Torp also advised Grown Rogue with respect to non-brokered private placements in anticipation of the reverse takeover transaction.

Shareholder Dispute

When outside investors flexed their power to terminate the founder of a vertically integrated Oregon cannabis company and maneuvered to make her shares worthless, Tonkon Torp brought claims for breach of fiduciary duty and shareholder oppression, ultimately obtaining a favorable buy-out for Tonkon's client.

LLC Member Dispute

When majority owners tried to squeeze Tonkon Torp's client out by forcing sale of the land where the company planned to obtain an OLCC cannabis producer's license, Tonkon brought counterclaims for minority oppression and obtained a settlement where Tonkon's client obtained all of the majority's interest in the company and the land.

Civil RICO

Obtained dismissal of civil Racketeering Influenced & Corrupt Organizations ("RICO") Act claims asserted in federal court based on our clients' state law-compliant medical marijuana activities.

Breach of Contract

Obtained favorable settlement for landowner who provided land and financing for OMMP cannabis production operation after the grower failed to share profits as agreed.

Action Items When Facing an OLCC Enforcement Inspection

Action Items When Facing an OLCC Enforcement Inspection
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Big Changes to OLCC Cannabis Licensing

Are you following the OLCC’s announcement that they are now accepting new applications for recreational cannabis retail, wholesale, and processor licenses?
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How Will Streamlined Cannabis Licensing Affect Compliance?

The approval timeframe in Oregon’s cannabis licensing process was historically very long and the amount of documentation and disclosures required burdensome. Thankfully, over the past year, the Oregon Liquor and Cannabis Commission (OLCC) made a…
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Regulators from Cannabis-Legal States Form National Association

Late in 2020, the new national organization Cannabis Regulators Association (CANNRA) was formed. While not much has been publicized about the organization’s work or efforts since it officially launched, its formation represents a major step towards…
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Plan Ahead for Increase in THC Package Limits

Starting in January 2022, the amount of THC allowable in edibles sold through a retail store will raise to 100 mg of THC per package, which is double the previous per-package limit of 50 mg. This is great news for consumers and the industry alike…
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Immediate Changes for Hemp Growers and Sales in Oregon

With the passage of HB 3000, a lot is about to change in Oregon’s hemp industry. One of the more immediate changes registered hemp growers may notice is additional enforcement action in areas of the state where illegal grows and “hot” hemp has become…
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Cannabis Licensing Update – No New Licenses Anytime Soon

At its recent monthly meeting, the Oregon Liquor and Cannabis Commission (OLCC) formally announced that it will recommend extending the moratorium on new producer licenses for two m ore years. This recommendation will be made to the Oregon…
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Holding Employees Accountable for Cannabis Violations

Cannabis businesses are highly regulated, with complex rules applicable to each level of the supply chain; from checking ID of customers to ensuring proper entry of plant weights in the state’s seed-to-sale tracking system, there are almost infinite…
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Cannabis License Rights Transfer 101 – Planning Is Key

It is a common misconception that cannabis licenses themselves are transferrable when in fact, by statute, they are not. It is possible, however, to contract with a licensed business to purchase (or sell) the rights to hold a license, utilizing the…
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The State of Oregon Cannabis Licensing – When Can We Expect New Licenses?

Since June 2018, Oregon has not processed new applications for any cannabis license type. Due to concerns of a large cannabis oversupply, and a flood of applications, Oregon’s cannabis regulatory agency, the Oregon Liquor and Cannabis Commission…
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What's in Store for Oregon Cannabis M&A?

The M&A market in cannabis and hemp has shifted dramatically in the last 12-15 months. While most operators once raced to expand and gain geographic scale, we are now seeing a major pivot as the focus is on measures of sustainability: positive cash…
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Oregon Marijuana Industry Wins Regulatory Relief, Receives Surprise Licensing News

The Oregon marijuana industry was victorious in the state’s 2021 legislative session with the passage and signing of Senate Bill 408.
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Danica Hibpshman Joins Oregon Cannabis Association Board

Tonkon Torp attorney Danica Hibpshman has been elected to the board of the Oregon Cannabis Association.
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Tonkon Torp Attorneys Share What's in Store for Oregon Cannabis M&A

Attorneys from Tonkon Torp’s Cannabis Industry and Mergers & Acquisitions practice groups co-hosted a webinar on M&A trends for Oregon’s cannabis industry with representatives from MGO, a CPA and accounting consulting firm with a substantial cannabis…
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Danica Hibpshman Helps Guide OLCC Regulatory Framework Updates

In July 2020, Tonkon Torp attorney Danica Hibpshman was appointed to a newly convened OLCC Regulatory/Legislative Advisory Committee for the cannabis industry. The committee was created to review existing cannabis regulations and formulate policy…
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Parna Mehrbani Talks Trademarks for NW Cannabis Law Institute

Tonkon Torp partner Parna Mehrbani was a featured panelist during the 2nd Annual Northwest Cannabis Law Institute series hosted by the Oregon State Bar Cannabis Section. The September 15 panel, which featured Parna and two other attorneys, was…
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Jessica Morgan Joins Board of Directors for NuLeaf Project

Tonkon Torp partner Jessica Morgan has joined the Board of Directors for NuLeaf Project, a nonprofit organization that addresses equity hurdles for underserved cannabis businesses.
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Tonkon Torp Holds Pandemic Primer Webinar for Oregon Cannabis Businesses

Tonkon Torp hosted a webinar to help guide cannabis businesses through the unique challenges that the cannabis industry faces due to COVID-19. The panel featured attorneys Danica Hibpshman, Jessica Morgan, Ferdie Ruplin, and David Petersen. Alex…
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Ferdie Ruplin Looks at COVID Legal Issues for TiE Oregon Panel

Tonkon Torp attorney Ferdie Ruplin was a featured panelist on a webinar looking at COVID from a legal perspective. The webinar was hosted by TiE Oregon as part of its COVID Survival Series. Ferdie spoke about the CARES Act and loans available through…
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Sherrill Corbett and Jessica Morgan Explore Cannabis Business Transition Strategies for PBJ Podcast

Sherrill Corbett and Jessica Morgan were featured guests on the April 8 episode of the Portland Business Journal’s Thought Leadership Podcast. Their episode explored smart transition strategies for businesses in the cannabis industry.
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Danica Hibpshman Joins Tonkon Torp from OLCC

Tonkon Torp LLP welcomes attorney Danica Hibpshman to the firm’s Business Department and Cannabis Industry Group. Hibpshman joins the firm from the State of Oregon, Oregon Liquor Control Commission, where she spent the last five years developing and…
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Representative Matters

Successful Business Exit Through Stock Sale

Advised and represented the owners of a hemp processing business in the sale of all issued and outstanding shares of the company to a buyer looking to acquire the operations of the business and related branding.