Financing Without a License: Raising Capital in the Cannabis Industry with Unregistered Broker-Dealers

Join Phillip Neiman, JAMS Mediator and Arbitrator, as he moderates a panel discussion on raising capital in the cannabis industry with unregistered broker-dealers The legal status of finders is murky and they operate in a regulatory gray area.  Companies that retain finders face potentially serious consequences for doing so, and finders face significant risks if they are deemed unregistered securities brokers.  Cannabis-related businesses that engage finders, and unregistered intermediaries who source capital for those businesses, face additional risk because of federal prohibition. 

This program will cover a range of topics that are important for companies and finders in the cannabis sector and their counsel, including :  the federal regulatory scheme for broker-dealers; the current legal status of finders as developed through SEC staff no-action letters, enforcement proceedings, and court decisions; the myriad risks associated with using and being an unlicensed intermediary; finder related issues unique to the cannabis sector; and the SEC’s recent proposal to create a safe harbor exemption for finders.

This program is presented by the Los Angels County Bar Association, Sacramento County Bar Association and  California Cannabis Industry Association.