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Document Information
Type:
Investment report / financial disclosure
File Size:
1.41 MB
Summary
This document is page 165 of a report by Ackrell Capital, LLC, dated 2017, detailing 'Chapter IX: Cannabis Industry Risk Factors.' It outlines the legal and financial risks associated with the cannabis industry in relation to U.S. Federal Law, specifically the Controlled Substances Act (CSA), warning of potential asset seizure, imprisonment, and regulatory hurdles regarding interstate commerce. The document bears a 'HOUSE_OVERSIGHT' bates stamp, indicating it is part of a larger document production to the House Oversight Committee.
Organizations (5)
| Name | Type | Context |
|---|---|---|
| Ackrell Capital, LLC | ||
| FINRA | ||
| SIPC | ||
| Federal Government | ||
| House Oversight Committee |
Locations (1)
| Location | Context |
|---|---|
Key Quotes (3)
"The manufacture, distribution, dispensing and possession of cannabis are strictly controlled under the Controlled Substances Act (CSA), irrespective of whether such activities comply with applicable state law."Source
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"Individuals and businesses... that violate the CSA or such other laws are subject to fines, asset seizure and imprisonment under federal law."Source
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Quote #2
"There can be no assurance that in the future the federal government will not strictly and aggressively enforce cannabis-related CSA provisions."Source
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Full Extracted Text
Complete text extracted from the document (2,053 characters)
ACKRELL
CAPITAL
CAPITAL
CHAPTER IX
Cannabis Industry Risk Factors
Companies in the cannabis industry are subject to many risks. The realization of one or more of these
risks could have a material adverse effect on the business and results of operations of a company and
on its lenders, investors and principals. The following discussion highlights some, but not all, of these
risks.
risks could have a material adverse effect on the business and results of operations of a company and
on its lenders, investors and principals. The following discussion highlights some, but not all, of these
risks.
Risks Related to U.S. Federal Law
• The manufacture, distribution, dispensing and possession of cannabis are strictly controlled
under the Controlled Substances Act (CSA), irrespective of whether such activities comply with
applicable state law. Financial transactions in connection with cannabis-related violations of
the CSA may violate other federal laws. Individuals and businesses—including the principals,
employees, directors, agents, lenders and investors of such businesses—that violate the CSA or
such other laws are subject to fines, asset seizure and imprisonment under federal law.
under the Controlled Substances Act (CSA), irrespective of whether such activities comply with
applicable state law. Financial transactions in connection with cannabis-related violations of
the CSA may violate other federal laws. Individuals and businesses—including the principals,
employees, directors, agents, lenders and investors of such businesses—that violate the CSA or
such other laws are subject to fines, asset seizure and imprisonment under federal law.
• Federal statutes and policies that currently restrict or deprioritize enforcement of certain CSA
violations related to cannabis are subject to expiration, rescission and other changes. There can
be no assurance that in the future the federal government will not strictly and aggressively enforce
cannabis-related CSA provisions.
violations related to cannabis are subject to expiration, rescission and other changes. There can
be no assurance that in the future the federal government will not strictly and aggressively enforce
cannabis-related CSA provisions.
• If CSA controls applicable to cannabis are relaxed or repealed in the future, other federal laws
and regulations governing the production, distribution and marketing of products for human
consumption, such as the Federal Food, Drug, and Cosmetic Act, may be more strictly enforced
by the federal government in relation to the cannabis industry.
and regulations governing the production, distribution and marketing of products for human
consumption, such as the Federal Food, Drug, and Cosmetic Act, may be more strictly enforced
by the federal government in relation to the cannabis industry.
• CSA controls and federal enforcement priorities applicable to cannabis both preclude interstate
commerce in cannabis and cannabis products. As a result, it can be costly or impractical for
companies in the cannabis industry to operate in multiple states and to gain economies of scale
through centralized operations.
commerce in cannabis and cannabis products. As a result, it can be costly or impractical for
companies in the cannabis industry to operate in multiple states and to gain economies of scale
through centralized operations.
© 2017 Ackrell Capital, LLC | Member FINRA / SIPC 165
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