Cannabis Industry
Tonkon Torp helps clients solve complex business problems within the regulated cannabis, 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.

Trump Proclamation Suspends Entry of Immigrant Visa Applicants Into U.S. for 60 Days

On April 22, 2020, President Trump issued a Presidential Proclamation temporarily suspending entry into the United States of certain foreign nationals outside the United States seeking immigrant visas. The Proclamation has several exceptions, and…
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Hemp and the Pitfalls of the USDA’s Interim Final Rule

Despite regulatory uncertainty and increased competition, we continue to see explosive growth in the amount of hemp production in the United States, with the amount of total acreage increasing by approximately 550% since the passage of the 2018 Farm…
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Tips on Looking for Funding for Your Cannabis Company

Funding a business with startup or growth capital is a universal challenge, but cannabis businesses face at least one unique hurdle in the continuing federal illegality of the industry. Aside from the difficulty in accessing banking resources…
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Pre-Employment Drug Screening Policies Are Changing for Oregon Employers

While the use of cannabis is still illegal at the federal level, 33 states now allow medical use and 11 of those states and Washington, D.C. have also legalized recreational use.
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Top 6 Ways to Protect a Cannabis Business Brand

As I previously discussed in my article and podcast published in the Portland Business Journal, U.S. federal trademark law does not currently extend to cannabis products. Because the required “use in commerce” of the cannabis plant and related…
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Will Oregon’s Cannabis Industry Go Up in Smoke Due to COVID-19 Fallout?

As the nation rushes to slow the COVID-19 pandemic, the cannabis industry finds itself caught in the chaos like everyone else. However, there is one additional caveat for cannabis businesses — not one penny of the $2 trillion federal stimulus package…
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Bankruptcy and Restructuring in the Cannabis Industry in 2020 and Beyond

While states continue to legalize cannabis, and the federal government continues to consider softening its stance, difficult questions persist at the intersection of cannabis and bankruptcy. As the cannabis industry continues to evolve in 2020 and…
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What You Need to Know About Buying and Selling Products Containing Cannabidiol (CBD)

It seems as though products containing cannabidiol (CBD) are everywhere – in supermarkets, health food stores, gyms, even the corner convenience store. And CBD can come in almost every product, regardless of the shape or size: oil, toothpicks, dog…
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3 New Employment-Related Laws in Oregon Impacting Cannabis Employers

New employment-related laws reflect a growing tolerance for an individual’s choices regarding consumption of cannabis and marijuana outside of the workplace. Nevada, for example, was the first state to pass a law that prohibits employers (with a…
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5 Ways To Gain High Ground While Selling a Cannabis Company

Notwithstanding federal law, a sign of the maturing cannabis and CBD markets is the sharp rise in M&A activity to build scale and market share. Marijuana Business Daily notes that as of August 2019, 233 M&A transactions were completed in the U.S…
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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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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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Parna Mehrbani Talks Trademark Options for Cannabis Companies on Business Journal Podcast

Tonkon Torp attorney Parna Mehrbani is the featured guest on the February 3 episode of the Portland Business Journal’s Thought Leadership Podcast. Her episode dives into trademark options, opportunities, and limitations for companies in the cannabis…
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Sherrill Corbett and Jessica Morgan Lead M&A Panel for Oregon Cannabis Association

Tonkon Torp partners Sherrill Corbett and Jessica Morgan led a panel discussion on M&A in the cannabis industry at the Oregon Cannabis Association member happy hour. Tapping into their experience of helping clients sell or seek investment in a…
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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.