Cannabis & Hemp Legal Services
Montague Law is a nationally recognized legal practice advising cannabis operators, hemp companies, investors, and ancillary businesses on the complex regulatory, corporate, and transactional challenges facing the legal cannabis industry. Our attorneys have been at the forefront of cannabis law since the earliest days of state-level legalization, and we bring hands-on deal experience that sets us apart from firms that treat cannabis as just another emerging industry.
Landmark Transaction Experience: San Felasco Nurseries
Montague Law attorney John Montague played a key role in the landmark sale of San Felasco Nurseries, Inc. to Harvest Health & Recreation, Inc. — a transaction valued at approximately $65.7 million that set the high-water mark for a cannabis license sale in Florida. The deal involved the acquisition of 100% of the stock of San Felasco Nurseries, which held a coveted Medical Marijuana Treatment Center license authorizing operations of up to 25 dispensaries across the state. This transaction demonstrated both the enormous value of state cannabis licenses and the sophistication required to structure complex cannabis M&A deals in a heavily regulated environment.
Cannabis License Applications & Regulatory Compliance
Securing a cannabis license is the foundation of any legal cannabis operation. Montague Law assists clients with license applications across cultivation, processing, dispensing, and delivery categories in multiple states. We prepare detailed application narratives, compliance plans, operating procedures, security protocols, and financial documentation required by state regulators. Our team also advises on ongoing regulatory compliance, license renewals, and responding to regulatory inquiries and inspections.
Cannabis M&A & Investment Transactions
The cannabis industry is experiencing rapid consolidation as multi-state operators expand through acquisitions. Montague Law advises buyers and sellers on the unique challenges of cannabis M&A, including license transfer approvals, regulatory change-of-ownership filings, Section 280E tax implications, intellectual property valuation, and the structuring of earnout and milestone-based consideration. We handle asset purchases, stock acquisitions, and management agreement structures designed to comply with state ownership restrictions.
Hemp & CBD Regulatory Compliance
The 2018 Farm Bill opened significant opportunities in hemp-derived products, but the regulatory landscape remains complex and evolving. We advise hemp cultivators, processors, and product manufacturers on USDA hemp program compliance, state licensing requirements, FDA enforcement discretion policies regarding CBD products, labeling and marketing compliance, and testing and quality assurance requirements. We also counsel clients on the legal distinctions between hemp and marijuana under federal and state law.
Cannabis Real Estate & Zoning
Securing suitable real estate is one of the most challenging aspects of cannabis operations. Montague Law advises on zoning and land use compliance for cultivation facilities, processing plants, and retail dispensaries. We negotiate cannabis-specific lease provisions addressing regulatory risk allocation, landlord consent requirements, security specifications, and early termination rights tied to license denial or revocation. We also handle municipal permitting and local government relations for cannabis facility siting.
Banking, Finance & Tax Planning
Cannabis companies face unique financial challenges due to the conflict between state and federal law. We advise on banking relationships, including compliance with FinCEN guidance for financial institutions serving cannabis businesses. We structure transactions to minimize the impact of Section 280E, which denies standard business deductions to companies trafficking in controlled substances. We also advise on state tax compliance, METRC seed-to-sale tracking system requirements, and financial reporting obligations.
Social Equity & Expungement Programs
Many states have implemented social equity programs designed to ensure that communities disproportionately impacted by cannabis prohibition can participate in the legal industry. Montague Law advises social equity applicants on license applications, compliance with equity program requirements, and access to technical assistance and capital resources. We are committed to supporting a more equitable cannabis industry.
Intellectual Property in Cannabis
Protecting brands and innovations in the cannabis space presents unique challenges due to federal prohibition. We advise on state trademark registration strategies, trade secret protection for proprietary cultivation techniques and formulations, licensing agreements for branded products, and the evolving landscape for federal trademark protection of hemp-derived products.
Frequently Asked Questions
Can I get a federal trademark for my cannabis brand?
Currently, the USPTO will not register trademarks for goods or services that involve marijuana due to federal prohibition. However, trademarks for hemp-derived products (with less than 0.3% THC) may be registrable. State trademark registrations are available in states where cannabis is legal, and we recommend comprehensive state registration strategies while federal law evolves.
What is Section 280E and how does it affect my cannabis business?
Section 280E of the Internal Revenue Code denies tax deductions and credits to businesses involved in trafficking controlled substances. Since marijuana remains a Schedule I substance under federal law, cannabis companies cannot deduct ordinary business expenses — only cost of goods sold. This can result in effective tax rates of 70% or higher. We help clients structure operations to minimize 280E impact through appropriate cost allocation and entity structuring.
How do I transfer a cannabis license in a sale?
Cannabis license transfers are heavily regulated at the state level. Most states require advance notice to and approval from the regulatory authority before any change of ownership or control. The process typically involves background checks on new owners, financial disclosures, and compliance reviews. We manage the entire transfer process, from initial regulatory filings through final approval, and structure transactions to allocate regulatory risk appropriately between buyer and seller.