Resources

Client Alerts, News Articles, Blog Posts, & Multimedia

Everything you need to know about BMD and the industry.

Will Federal Legislation Open Cannabis Acquisition Floodgate?

Client Alert
February 18, 2021

Are potential buyers quietly lobbying at federal and state levels to kick open the door to launch a new round of strategic acquisitions? Will presently pending federal legislation, the SAFE and MORE Acts, providing safe harbor for banks and re- or de-scheduling marijuana, be sufficient to mobilize into action major non-cannabis companies that previously shunned the cannabis industry due to the unknown implications of owning businesses whose activities are illegal under federal law?

When tobacco giant Altria invested $1.8 billion in Cronos, and beverage behemoth Constellation Brands invested in Canopy, the investments did not require the assumption of a smorgasbord of unknown risks that come with investing in federally illegal enterprises since neither Cronos nor Canopy had any “illegal” US operations. These include key business issues and concerns, such as banking relationships (almost certainly mitigated by the SAFE Act), stock exchange listings and liquor licensing.

It was recently disclosed that Altria, which has been acquiring ancillary cannabis businesses and intellectual property since its Cronos deal, has engaged lobbyists to promote its cannabis interests. It wouldn’t be much of a leap to speculate that they, and other potential strategic tobacco, beverage and pharma company investors, are both carefully analyzing the pending legislation in the US and actively working to firmly place their feet in the open door and widen the porthole, facilitating a new wave of acquisition activity.

Right now, as the financial performance of cannabis businesses is beginning to pop, the shelves of the acquisition market are fully stocked with potential acquisitions candidates of all sizes, shapes and flavors. If the door is opened, competition and pricing could be eye popping. Think “first mover advantage.”

Stay tuned.

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 480.687.9747.

Cannabis LawStephen A. LennFederal LawBusiness & Corporate LawIntellectual PropertyRussell T. Rendall
Client Alert

Key Healthcare Provisions in Ohio’s 2026–2027 Budget

July 2, 2025Ohio’s newly enacted biennial budget (HB 96) for FY 2026–2027 brings sweeping changes for healthcare providers across the state. The law includes new Medicaid eligibility requirements, reporting mandates, funding directives, and social policy provisions. Several vetoes by Governor DeWine also affect healthcare-related initiatives.Client Alert

Providers Beware: Court Sides with Insurers in No Surprises Act Arbitration

July 2, 2025On June 12, 2025, the Fifth Circuit ruled in favor of Aetna and Kaiser in two lawsuits brought by air ambulance providers challenging how insurers calculated payments under the No Surprises Act’s Independent Dispute Resolution process. The court held that unless there is clear evidence of fraud or serious misconduct, IDR decisions will stand, reinforcing the finality of the arbitration process.Client Alert

Introducing HB 281: Enforcement of Federal Immigration Laws in Ohio Hospitals

July 1, 2025House Bill 281, introduced on May 20, 2025, would require Ohio hospitals to allow law enforcement, including federal immigration agents, to enter facilities and enforce immigration laws. The bill mandates that hospitals comply with information requests and adopt formal policies, raising significant concerns about patient privacy and access to care for immigrant communities.Client Alert

Parental Consent May Soon Be Required for Minor Mental Health Services in Ohio

June 25, 2025HB 172 proposes repealing a provision in Ohio law that allows minors age 14 and older to consent to limited outpatient mental health services without parental involvement. The bill would require parental consent for all such care and remove related language from other sections of the Ohio Revised Code.Client Alert

Community Behavioral Health Providers - Supervisor Pricing Changes Begin July 1 [Corrected Date]

June 16, 2025Effective June 16, community behavioral health providers wishing to receive reimbursement at the supervisor rate must add the HP or HT Modifier to fee-for-service (FFS) claims. Find out about the new guidelines.
Older posts