Archive

How Cannabis Companies Use ESOPs for Tax Savings and Ownership Transition

By Charles Alovisetti, Jack Crain
Aug 7, 2025

As the cannabis industry matures, more operators are exploring alternative ownership structures that support both long-term growth and successful exits. One powerful yet underutilized option is the Employee Stock Ownership Plan (ESOP). In this article, we discuss how cannabis companies can use ESOPs to create tax-efficient exit strategies, reduce the impact of Section 280E, and build long-term value through employee ownership. We also outline the structure, tax benefits, regulatory considerations, and practical execution of ESOP transactions in the cannabis space.

[Webinar] Understanding ESOPs: Taxes, Cash Flow, and Employee Ownership

Aug 7, 2025

Looking for a strategic, tax-advantaged way to grow your cannabis company or plan for succession? An Employee Stock Ownership Plan (ESOP) could be the solution. In this session, Vicente LLP’s corporate team and special guest Darren Gleeman, Managing Partner at MBO Ventures break down the core benefits of ESOPs for cannabis businesses, explore key structures, and answer common questions.

Raising Capital for Your Business: Why Companies Should Avoid Non-Accredited Investors

By Charles Alovisetti
Feb 11, 2025

Startups and growing businesses need capital, but should they accept funds from anyone willing to invest? The answer: probably not. In fact, choosing the right investors—particularly accredited investors—can save you time, money, and future headaches. In this Insights post, we discuss what to look for when selecting an investor and the risks of raising funds from unaccredited investors, including disclosure agreements, preemptive rights issues and IPO complications. Plus, considerations when deciding to work with investors outside of the United States.

Raising Capital for Maryland Social Equity Cannabis Businesses

By Charles Alovisetti, Elena Markos
Sep 27, 2024

Maryland recently awarded cannabis business licenses to social equity applicants. If you were one of the lucky lottery winners, now it’s time to focus on raising money for your business. Read this insight for essential considerations around raising capital for Maryland social equity cannabis licensees.

Charles Alovisetti Talks Raising Capital in Upcoming Rootwurks Webinar 'The Search for Green Capital: The Funding Issues Cannabis Companies Face'

Aug 24, 2022

Register for this free Rootwurks webinar to hear from Charles Alovisetti about why raising capital can be so tricky for cannabis businesses.

Financing New Ventures: 10 Key Considerations to Structure an Equity Raise for a New Company

By Charlie Alovisetti, Navid Brewster
May 10, 2022

Raising money for a company is challenging. It can be even more challenging if you haven’t been through the process before and don’t know what decisions you need to make. This article lays out 10 key considerations to think about when setting up your financing.