Cannabis and Cannabinoids

Cannabis and Cannabinoids

Advice on Legal Supply and Investments

The legal cannabis market is of increasing interest to entrepreneurs and investors. In recent years, we have seen a trend of growing deregulation in the supply and use of cannabis and cannabinoids globally, coupled with a change in societal attitudes.

The potential market for legal cannabis is large and ever-increasing. Recent market research has estimated that spending on legal cannabis worldwide increased from US $9.5 billion in 2017 to US $12.2 billion in 2018 and is projected to grow 38% to US $16.9 billion in 2019.

In October 2018, Canada (where the medicinal use of cannabis had been lawful since 2001) legalised the recreational use of cannabis, following similar moves in Uruguay and Georgia. In the US, many states have either legalised or decriminalised usage.

Here, in the UK, doctors are now permitted to prescribe certain cannabis-derived medicinal products on the NHS. According to a 2018 report from the UN International Narcotics Control Board, the UK is the world’s largest producer and exporter of legal cannabis for medicinal and scientific use.

Those operating in this field in the UK will need to be mindful of the complex domestic regulatory regime and the extra-territorial reach of the Proceeds of Crime Act, as well as the commercial considerations that affect all nascent industries.

At Wallace, we have experience of advising on cannabis-related businesses and investments, both for market operators (growers, suppliers and exporters) and for investors (domestic and overseas). We can advise on licensing and regulatory matters, supply chain control measures, the setting up of new businesses, corporate investments and other transactions.

Our cross-disciplinary team includes:

Regulatory matters: Partner, Oli Goldman and Senior Associate, Josephine Mathew

Corporate transactions: Partners, Rex Newman and John Woodhouse

Commercial agreements: Partner, Frank Jennings

We would be pleased to assist clients with any questions.