As the legality of cannabis products becomes more complex with differing state and federal regulations, the experts at Ritter Spencer Cheng PLLC are able to provide insight and guidance on reorganization and bankruptcy proceedings for cannabis companies. David Ritter is thrilled to share his expertise in cannabis law in an exclusive article on The Deal discussing the challenges faced by cannabis companies considering bankruptcy. This article highlights the complicated landscape of cannabis under federal and state laws, which is especially important as businesses in this industry attempt to restructure or file for bankruptcy.
With the cannabis industry estimated to have an economic impact as high as $77 billion by 2022, business owners and consumers alike are searching for legal precedents and protections within this growing market. Stephanie Gleason, a reporter for The Deal, breaks down the challenging situations of cannabis-based businesses that are facing financial hardships. Cannabis companies that are operating in accordance with their state’s laws may be unable to file for bankruptcy due to violations of federal regulations. Although a hemp grower and CBD producing company was permitted to enter into Chapter 11 bankruptcy earlier this year, many cannabis and cannabis related businesses may be unable to file for bankruptcy if those companies sell or profit from the sale of controlled substances. David Ritter is expecting legislative changes in the next few years that would exempt businesses operating legally under state laws and help them receive relief or aid through bankruptcy.
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About Ritter Spencer Cheng
Ritter Spencer Cheng PLLC is a law firm specializing in cannabis law, as well as a variety of other litigation areas, including commercial bankruptcy, trademark, and copyright law. Cannabis companies that are attempting to determine a financial strategy or are considering bankruptcy, restructuring, or reorganization can rely on the expert team of cannabis attorneys at Ritter Spencer Cheng. With over 25 years of litigation experience, David Ritter is prepared to advise your business on how to proceed through the complicated legal environment surrounding cannabis.