South African Companies Prepare For New Cannabis Regulations, Experts Expect Lots Of Fundraising And Debt
As the cannabis law in South Africa further develops, there will be more opportunities for law firms to get involved, says Paul-Michael Keichel, a lawyer with South Africa’s Cullinan & Associates.
Why? On May 28th. South African President Cyril Ramaphosa signed into law the Cannabis for Private Purposes Act (CfPPA), which regulates the cultivation, possession and consumption of marijuana by adults in private settings. The measure, however, does not allow for legal marijuana sales. Adults can cultivate their own plants and can only consume it in their private residences. Selling cannabis could lead to a penalty of up to 10 years in prison.
Plenty Of Fundraising And Debt
The government has yet to release detailed regulations on the quantity of cannabis that can be cultivated for personal use and the licensing process. Coming up with these rules presents a challenge for government and legal experts, writes Law.com.
Eric Berlin, who leads the cannabis team at Dentons, one of the biggest global law firms said South Africa’s new law brings important commercial opportunities as the market matures. Berlin predicts growing demand for legal advice on intellectual property, patents and trademarks as well as regulatory details.
“There’s going to be a lot of transactions, including fundraising and …