The Cannabis Company Structure Hall of Shame (with Pictures)

We have worked with, in and around cannabis companies for a decade here at Harris Bricken. In that time we have been privileged to advise and structure some truly impressive enterprises. Conversely, we have also seen all manner of  malfeasance, nonsense, and fraudulent scheming. This post explores the latter. Specifically, it covers a personal grievance I’ll refer to as “obfuscating structures.”

Often, we see obfuscating structures when someone hires us to review a potential investment opportunity. Other times we are brought in late, when people have begun to argue about something unfortunate that happened in one of these structures. A pile of money has inevitably disappeared; no one really knows how; no one knows quite where to start.

The “Cash Flow Chart”* immediately below is a real beauty. It was built by someone who was either wildly optimistic or a huckster. Our client in this fiasco was a hapless manager and director of one or more of these companies. He was sophisticated in horticulture but not in business. He also had monied family connections, and he and they had been lured in by the wild optimist/huckster.

All names above have been changed to protect the innocent. To be clear,

Read More Here…

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