The Scuttlebutt Featuring Articles About Cannabis Contract Approval Headaches, CA Cannabis Licensing and More

In the days of the Armada, a fleet of warships, the scuttlebutt was the rumor or gossip that would spread throughout the ship. Today, Armada Law Corp presents The Scuttlebutt, a daily summery of news articles that people within the cannabis, hemp and plant medicine industries are chatting about along with links to the full articles.

In today’s news:

#cannabisindustry – “Contract approvals are exactly what they sound like: a party to a contract cannot do something without the other party’s consent (usually prior and written approval). I like to think of cannabis contract approvals as falling into one of two buckets: contract approvals related to a contract, and contract approvals that are unrelated or somewhat related to a contract.

With respect to the first bucket, these kinds of things are generally fairly obvious. A contract usually will require one party to act a certain way, and the other party will need to consent to departures from these actions. One pretty common approval is the approval of a property lessor to an assignment or sublease. These can be a huge headache for buyers in M&A deals, as I’ve discussed before. The bottom line is that any time a cannabis business wants to take any kind of action that relates in any way to a written contract, it first needs to review the contract.

The second bucket of cannabis contract approvals can be a bit more difficult. These relate to actions that may be unrelated or only somewhat related to a contract. For example, a lender may require that a borrower not secure third party financing even on matters unrelated to the lender’s loan without the lender’s prior written approval.”


#cannabisindustry – “In Bangkok’s Chinatown district, Thai entrepreneurs Boss Asakon Singsikornkun and Jamiez Rayzoowaht Spaunpullsate are building a multi-floor cannabis complex where local and traveling cannabis lovers alike will be able to learn about the plant and enjoy a relaxing massage, a delicious meal, and some locally grown flower—all without having to leave the building.”


#californiacannabis – “Three groups have filed for an appeal from the Humboldt County Superior Court for a commercial grow project near McCann, a remote area in Southern Humboldt. This is following lawsuits and appeals by the groups that have yet to change conditional use permits for Rolling Meadow Ranch, issued in January 2021.

Larry Glass, executive director of the Northcoast Environmental Center said three judges who have heard previous appeals of the 8.5-acre project have thus far deferred to the Humboldt County Planning Commission’s decision. NEC is one of the petitioners of the appeal.

“We want the appeals court to set the record straight again — we feel like we’re going to be successful,” he said.

Glass said the groups want to see a full California Environmental Quality Act, or CEQA, analysis of the project. The appeal is for alleged violation of CEQA and Humboldt County’s General Plan.”


#californiacannabis – “A California attorney and his partners accused of targeting a disabled man with promises of high returns on a cannabis venture and then cheating him out of profits have told a state court the dispute belongs in arbitration because the deal was aboveboard and the man had plenty of time to review it.
Attorney Kimble Cannon and Thrive Social Equity Manager VIII LLC, the company that now-deceased partner Brandon Shubunka was working alongside on the cannabis venture, said Tuesday there has been “absolutely no evidence” of an “unconscionable” deal, asserting the arrangement was lawful when entered into — even though at least one aspect is not.
Plaintiff Cortney Newton, who represents Shubunka’s estate, has argued that the agreements are illegal and violate the requirement that Shubunka have unconditional ownership of at least 51% of his business.”

Company Says Deal For Cannabis License Was Lawful:


#californiacannabis – “But all the time and energy she’s spent applying for permitting, keeping up with changes to county regulations, building out a brand, forming distribution and retail partnerships, and, perhaps most notably, navigating a state licensing process that often collides with local bureaucracies could all be for nothing amid an existential crisis on the industry horizon.

“If something dramatic doesn’t happen before July 1st, we are all locked out of the legal market,” Kislak says. “For me in particular, due to the zoning of my property, if I lose my license, I may never be able to get licensed again.”

Kislak is referring to a licensing backlog that has formed in Mendocino County, where tight government operating budgets and a failure to act on discretionary authority have left county officials slogging behind on carrying out the environmental reviews required for cannabis cultivators to transition from provisional to annual licensure.

This backlog, which includes more than 96% of Mendocino County’s active cultivation operations that do not have annual licensure, has developed despite the California Department of Cannabis Control (DCC) allocating nearly $17.6 million in grant funding in early 2022 to assist the county with the permitting process.”

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