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Complex corporate structure "creativity" is often justified




Complex corporate structure "creativity" is often justified as being necessary to avoid triggering burdensome tax liabilities, and being able to get "clean" money out of a #cannabis company...


However, more often than not, the sheer complexity of these architectured mechanisms allow for fraud on investors and/or other transaction partners.


Ever since the big corporate raiders have joined the cannabis scene, corporate finance alchemy has become part and parcel of the regular day-to-day cannabis business world. If you don't know how the game is played... You're likely to get burned.


When doing cannabis deals, make sure you know how to read and understand contracts and corporate structure... like really really well.


Also be prepared to spend the necessary time (and money) to create good contractual provisions designed to balance and address ALL the risks that are apparent and those that may ordinarily appear to be just a "remote possibility" to your deal.


“For the sake of the deal” people will often fail to address issues or otherwise cave on getting to the specific language/wording they’d prefer to have in the terms of the arrangement.


In today’s world, it’s clear that those "extra" steps can be the ultimate difference between your investment's life or....lawsuit.


Read more here:


https://harrisbricken.com/cannalawblog/the-cannabis-company-structure-hall-of-shame-with-pictures/

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