Industry

Hemp & THC Products

Hemp-derived products exist in a fragmented and ever-changing legal environment. Laws vary widely from state to state, and are constantly shifting.  We represent businesses involved in the retail sale, distribution and production of hemp and hemp-derived THC products, including beverage brands and direct-to-consumer marketplaces.  

We also specialize in offering advice to  third party service providers, such as banks, lenders, and insurers that have clients that propose to engage in the production, distribution or sale of hemp-derived products, which frequently creates a host of questions as legislative and regulatory developments arise on a near weekly, if not monthly, basis for those dealing with companies with a more national footprint.  Investors may be confronted with similar questions, as will grocers and other major retailers. 

Our Hemp & THC Products group is comprised of attorneys across practice groups, spanning multiple offices with unique insight and experience to assist businesses intersecting with this ever evolving industry.  We maintain a 50-state analysis of all state laws, regulations, executive orders, attorney general enforcement, subregulatory guidance, and court decisions that ensure businesses can maintain real-time compliance with the ever-changing regulatory landscape.  We also represent both buyers and sellers of hemp businesses, as well as investors.  For third parties, we place emphasis on commercial contracts that are fully protective and customized to account for the changing nature of regulation in this novel area.  

Our practice includes former prosecutors, full-time cannabis and hemp regulatory specialists, early stage and venture counsel, FDA regulatory experts,  IP and commercial contract and licensing attorneys, all of whom advise and strategize with businesses as to the risks inherent in working with the hemp and THC products industry. We have been among the first national law firms to counsel clients in both the cannabis and hemp spaces.  Our team includes experts in both alcohol and food and beverage law, including the Alcohol and Tobacco Tax Trade Bureau, the NJ ABC, NY SLA, MA ABCC, state cannabis regulators, and others.  We provide advice specifically to the alcohol and liquor and spirits industries as well as major grocers and retailers. 

We specialize in compliance practices that all businesses can adopt, whether ancillary or “plant touching.”  We have advised clients in the banking, lending, financial services and accounting fields, as well as investors. We represent numerous producers, suppliers, distributors and retailers of hemp and THC products, including companies traded on the Canadian Securities Exchange and NASDAQ.  

Areas of Focus

Medical and adult-use cannabis businesses face a complex set of federal and state laws and regulations that apply to cultivation, processing and dispensing cannabis, as well as to ancillary services. Lawyers in Foley Hoag’s Cannabis Practice have assisted both public and private cannabis companies with:
  • 50-state compliance reviews, including product formulation review
  • State and municipal permitting 
  • Food and beverage law
  • Alcohol and liquor law
  • Regulatory Compliance, including as it relates to sourcing, packaging, labeling, and compliant testing. 
  • FDA and FTC compliance
  • Legislative and Regulatory Policy Counsel, with respect to proposed legislation and regulations associated with hemp-derived products. 
  • Licensing and Commercial Contract Drafting and Review
  • Public company and Capital Markets matters
  • Major mergers and acquisitions
  • Formation of private funds and fund compliance 
  • Corporation formation, early stage company issues, and other business counseling
  • Employment matters
  • Tax structuring and strategy
  • Legal Opinions for Third Party Providers, such as banks and lenders
  • IP, including registration and defense of trademarks
  • Business and investor disputes
  • Business Risk Analysis

50 State Survey

50 State Survey

Please contact us for more information as to Foley Hoag’s services for intoxicating hemp businesses, including, but not limited to, access to Foley Hoag’s 50-State Survey, requests for customized surveys, product packaging and labeling review, and other general hemp regulatory advice and assistance.

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Sample

Experience

  • 50 state compliance and product formulation reviews for DTC, retailers, marketers and alcohol distributors
  • Legal opinions to banks and creditors
  • Represent numerous alcohol retailer and distributors in various states in contractual, regulatory and risk-analysis matters
  • Represented underwriters in High Tide Inc.’s (Nasdaq: HITI) (TSXV: HITI) (FSE: 2LYA) at-the-market equity offering up to C$30 million of common shares and C$10.0 million bought deal public offering and concurrent U.S. private placement, including regulatory compliance reviews for hemp business
  • Transactional and Regulatory counsel to the Valens Company (Nasdaq: VLNS) (TSX: VLNS) (now a subsidiary of SNDL, Inc., NASDAQ: SNDL) in acquisition of hemp distributor and manufacturer, Green Roads
  • Represented multiple investors, lenders and operators in structuring complex joint ventures with convertible notes, working capital and construction loans
  • Hemp-derived cannabinoid extraction technology company in successful U.S. patent application
  • Novel extraction technology company in successful U.S. parent application
  • Patent applications for several hemp-related technologies and formulations, including all patent work for Tier 1 MSO and hemp-tech startups
  • Numerous brands and manufacturers in various jurisdictions in white-label, contract manufacturing and related agreements
  • Hemp-focused venture fund and parallel fund for direct investments on fund and launch
  • U.S. Securities and Regulatory counsel to several Tier-1 Canadian public companies, traded on NASDAQ, on all hemp-related issues, which includes 50-state regulatory guidance, public disclosures, and compliance matters with U.S. stock exchanges.
  • Transactional counsel Tier 1 MSOs in U.S. acquisitions of hemp assets and state-by-state regulatory anaylsis
  • Counsel to investment advisor and placement agent in numerous transactions involving U.S. hemp assets
  • Trademark counsel for several hemp brands
  • Compliance advice to multiple cannabis companies on use of hemp and hemp derivatives in regulated cannabis programs
  • Numerous clients with regulatory compliance advice regarding the production and distribution of industrial hemp, CBD and other cannabinoids, including FDA enforcement and compliance matters

People

Get to know the attorneys in our Hemp & THC Products speciality: