Resources

Client Alerts, News Articles, Blog Posts, & Multimedia

Everything you need to know about BMD and the industry.

Valley National Bank/Trulieve Loan: A Big Step Out of the Shadows

Client Alert

In a late December press release, Trulieve announced that it had secured a $71.5 million commercial bank loan. In addition to the amount of the loan, which may be the largest commercial bank loan to date to a cannabis company, the release prominently identified Valley National Bank and featured both a quote from Valley’s Senior Vice President, John Meyer, and a description of the Bank’s service platform and commitment to the cannabis industry. To me, this reflects a sharp contrast with other announced bank loans to the industry, in which the lending banks were neither identified nor quoted, presumably by their choice.

Those who have followed my blogs and articles, or have attended conferences at which I’ve spoken, are aware of the 2 consistent and integrally related threads: “follow the money” and “out of the shadows and into the mainstream.” My April 2022 blog regarding the $48 million commercial bank loan to Fluresh, noted:

“For the industry, it reflects its inexorable movement out of the shadows and into the mainstream. This substantiates the view that, whether or not any of pending the federal legislation is enacted, bank lending to the cannabis industry will continue to accelerate.

While a number of mega banks are stubborn holdouts, and whether or not there is a formal change in bank law or regulation, this transaction is further evidence supporting the belief that more and larger banks are entering and will continue to enter the market. Each one that does both paves the way for and draws others in.

Of equal, or perhaps greater significance to the industry than the direct impact on increased access and cheaper money on the operating results, are the intangible, “out of the shadows” implications of these trends in the ongoing process of propelling it “into the mainstream,” the potential significance of which likely extends far beyond banking.”

The fact that Valley National Bank was willing to be identified and provide a quote in this case is another major step in this direction.

For questions, please contact Business and Corporate Law Member and Managing Partner of BMD’s Phoenix/Scottsdale location Stephen Lenn at salenn@bmdllc.com, or 602.796.9647. Stephen speaks regularly at legal and cannabis industry events. You can find out about his upcoming presentations at the Kahner Global Cannabis Investing Summit on February 27 and at the Benzinga Cannabis Capital Conference April 11 and 12.


Patient Abandonment and Termination

Healthcare professionals have a responsibility to patients with whom they have established a treatment relationship. However, there may be some instances when they will need to terminate their relationship with a patient. FAQs for patient abandonment and termination are provided to help guide physicians.

A Business or Person Who Owes You Money Has Filed for Bankruptcy. Now What?

When you receive a notice that someone you do business with has filed for bankruptcy, it is important to act quickly to determine your rights in the bankruptcy process and to protect them. Here are seven things to do right away.

Recent Litigation Challenges the Affordable Care Act Preventive Services Requirement

The Affordable Care Act (ACA) has been met with numerous legal challenges. The most recent legal challenge, Braidwood Management Inc. v. Becerra, could affect millions of people covered by private health insurance.

340C – Prospective Legislation to Protect Federally Qualified Health Centers

Advocates for Community Health (ACH), an organization created to implement policy and advocacy initiatives for health care systems across the United States, has begun drafting legislation that is geared towards protecting Federally Qualified Health Centers (“FQHCs”) enrolled in the 340B Program, which is being dubbed “340C.”

Getting Paid to Vote

Can you get paid to vote? Election Day is upon us and employees across the country are asking whether they can get paid to vote. Essentially, can they take paid leave of a few hours to go to the polling location to cast their vote in a midterm election or presidential election. Well, it depends on the state where the employee works.