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POT PITFALLS – Regulatory uncertainty is a major factor in the challenging sphere of marijuana industry mergers, Dan Clark reports. That’s according to general counsel at companies in the cannabis space. More than a few mergers of late have been significantly altered or abandoned altogether amidst a patchwork of state laws and a federal ban. The constantly changing market also makes deals tough because company values change quickly yet mergers take a long time to come together in part because they must receive Justice Department approval. Not only that, but the pool of investors in the marijuana market is relatively small.
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