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Oregon Marijuana Investment Opportunities
Anyone with a financial interest in a cannabis business is considered a “licensee” under Oregon law. A financial interest means “having an interest in the business such that the performance of the business causes, or is capable of causing, an individual, or a legal entity with which the individual is affiliated, to benefit or suffer financially.”
If you invest, your identity must be disclosed to the state of Oregon under the following circumstances:
(a) Financial interest includes but is not limited to:
The Law: (A) “Receiving, as an employee or agent, out-of-the-ordinary compensation, either in the form of overcompensation or under compensation;”
Explanation: This includes paying growers or other “employees” a percentage of the profit.
The Law: (B) “Lending money, real property or personal property to an applicant or licensee for use in the business at a commercially unreasonable rate;”
Explanation: Your identity is NOT disclosed as a lender if you are charging a reasonable interest rate at or above market. If you are giving a family member giving a “no-interest” loan, then you are an investor with a “financial interest.” The same thing applies if you allow a family member or friend to grow on your property for no reasonable rent.
Oregon Law: “(C) Giving money, real property or personal property to an applicant or licensee for use in the business;”
Explanation: Gifting something for use in a cannabusiness may make you have a financial interest even though you don’t (since a gift gives you nothing in return).
Cannabis Law: “(D) Being the spouse or domestic partner of an applicant or licensee. For purposes of this subsection, “domestic partners” includes adults who qualify for a “domestic partnership” as defined under ORS 106.310.
Legal Exclusion: “(b) Financial interest does not include any investment that the investor does not control in nature, amount or timing.”
Explanation: This is perhaps the most important exclusion which would protect the identify of limited partnerships in private equity firms who have only an advisory capacity in the business.
Consequences to Oregon Cannabis Investor with a “Financial Interest”
While users, growers and dispensaries of marijuana who comply with Oregon’s marijuana laws are protected from state criminal prosecution, their activities remain illegal under the Federal Controlled Substances Act and other related federal statutes.