*How will stock options and equity issued by the seller be incorporated in the M&A?
*As a result of a deal, do any of the unvested options or equity accelerate in their vesting?
*Might the buyer ask for non-compete agreements for key employees as a condition for completing the transaction?
*Are there any issues with employment agreements or dismissals that could potentially cause a problem for the buyer?
*Have all current and past employees signed confidentiality agreements?
*Have all current or past employees signed invention assignment agreements?
*Will key management/employees be retained? If so, under what terms?
You need a great legal team
M&A agreements in any industry are complex, multi-dimensional and can be contentious. They are fast moving and involve difficult legal issues. Because of this, buyers and sellers need lawyers familiar with these deals. Not only do lawyers need to be competent with respect to the substantive law, but it is also imperative they be skilled advisors and negotiators with an intimate knowledge of the cannabis industry. For more information or to connect with one of our lawyers, please feel free to reach out at 604-629-5400 or [email protected].
Article co-written by Alon Segev, managing partner; David McHugh, lawyer; and Eric Kroshus, 2019/20 articling student.
Disclaimer
***This content is provided for informational purposes only and has not been tailored to your specific circumstances. This content does not constitute legal advice or other professional advice and may not be relied upon as such. ***
By Segev LLP|September 24th, 2019|Blog, Cannabis Law, Cannabis Regulations