Canadian Lawyer - sample

26 S E P T E M B E R 2 0 1 6 w w w . C A N A D I A N L a w y e r m a g . c o m For lawyers like myself, this new industry presents a very, very good opportunity if you're representing the bigger companies because what will happen is they'll consolidate. They will continue to acquire businesses. So for a lawyer, there's partnership agreements, there's commercial agreements, there's public fundraising and mergers and acquisitions. Debbie Weinstein, LaBarge Weinstein LLP 1,284 – Number of licensed producer applications received by Health Canada 34 – Total number of licensed producers in Canada 935 – Number of rejected or withdrawn licensed producer applications By the 22 – Number of licensed producers permitted to sell cannabis oil industry. It's all of the legal work that's normally entailed in commercial transactions plus all the regulatory layers on that." A government advisory task force on legalization, chaired by former deputy prime minister Anne McLellan, is in the midst of contemplating the rules around this new industry. The feds are expected to introduce a legalization bill by 2017. Much will depend on how the regulations shake out and what type of barriers there will be for entry into the industry. Whatever the task force and the government design, it will be unprecedented. Full, countrywide regulatory systems for recreational use of marijuana are so uncommon even Holland doesn't have one, Szweras says. "The reality of the matter is that this will be the first legal program that any OECD country has brought in," he says. Many expect provinces will regulate distribution, with some room for municipal input when it comes to issues such as zoning. If lawyers' predictions are right, the regulations will be tight, with highly restrictive guidelines on both manufacture and distribution. "It's not like it's a chocolate bar and you're going to start selling it at a corner store. I personally believe that distribution will be restricted like alcohol is," Weinstein says. "What the government wants to do is get the manufacture and distri- bution out of the hands of criminals. And to do that, they will restrict the manufacture and distribution." On the other hand, of course, the government has to ensure the restraints on dis- tribution and access aren't so high as to sustain the underground market. It's a delicate balance, and much hangs on it. What's certain is that a highly regulated industry will mean greater need for legal services and professionals who know their way around regulations and the industry in general. In the meantime, investors are not holding their breath until the rules are on paper — they're already making decisions, and to do so, they're relying on their lawyers' best guesses on which way the regulations will turn. Cheryl Reicin, a partner at Torys LLP, advises private equity firms, venture capital funds and investment banks that fund biotechnology companies. She says that, these days, institutional investors and large banks are asking her team for insight into how things will unfold. Businesses and investors are jumping at the industry now because they feel they can't afford to wait, Reicin says. "It's unknown, and this is sort of the fun in the opportunity," she says. "It could be that once the regulations come out, some big drug companies could come and wipe out some of the smaller players." Eileen McMahon, a regulatory lawyer also at Torys, says the level of barriers to entry into the industry will determine which players will enter the game. High bar- riers, for example, will draw those who are already comfortable with thick layers of regulation, such as those in the drug industry. "Who is currently looking at this? Everybody," McMahon says. "You've got banks looking at it, you've got pharmacies looking at it. You've got possibly liquor distri- bution companies and tobacco companies. Many of them are interested in how this numbers Source – Health Canada

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