Casner & Edwards Represents Opus Consulting in First Cannabis Receivership in New England
Opus Consulting and Casner & Edwards Team Completes Financial and Operational Restructuring of Ermont, Inc. in First-of-its-Kind Receivership Sale to Multi-State Operator MariMed, Inc.
Casner & Edwards represented Opus Consulting Partners LLC, the court-appointed receiver to medical cannabis operator Ermont, Inc., in the sale of the company’s business operations and assets to an affiliate of multi-state cannabis operator MariMed, Inc. The history-making transaction is a key milestone in the first-ever cannabis receivership in New England. Attorneys John T. Morrier and Michael J. Fencer led the Casner legal team in representing Opus, with support from members of Casner’s Bankruptcy & Restructuring, Nonprofit Organizations, Real Estate, Employment, and Business & Corporate practice groups.
Approved on March 9, 2023 by the Massachusetts Cannabis Control Commission (CCC), after earlier approval by the Massachusetts Superior Court, the transaction preserves the Ermont jobs and its cultivation and medical dispensary operations. The total consideration for the sale transaction was $13 million, in a combination of cash, stock, and debt. MariMed, which announced the deal closing on March 13, 2023, continues to operate Ermont’s cultivation and medical dispensary operations in Quincy, Massachusetts, now rebranded as Panacea Wellness.
In a press release, Jacques Santucci, president, Opus Consulting, explained, “Competition is increasing, wholesale prices are falling, and more and more cannabis licensees are falling into a state of distress in Massachusetts and other maturing markets. Through the receivership, we were able to streamline Ermont’s operations and procedures, negotiate a restructuring of its debts, maintain jobs, and provide uninterrupted service to medical marijuana patients.”
While this is the first cannabis receivership transaction to be approved by the Massachusetts CCC, and the first cannabis receivership in New England, others are already underway in New England and across the U.S. “Because marijuana remains a Schedule I substance under the US Controlled Substances Act, the doors to the federal bankruptcy courts are closed to businesses engaged in the cultivation, manufacturing, sale, or distribution of cannabis,” said Casner partner John Morrier. Receivership is an alternative state-court process available to struggling cannabis businesses and creditors that allows the business to continue while the receiver restructures its operations and finances.
In a related first, Casner’s team represented Opus Consulting personnel in achieving the CCC’s designation as Preapproved Court Appointees, authorizing them to operate Massachusetts cannabis licenses under court supervision. The Opus team was the first to achieve the designation.
“The receivership process allowed our client, upon appointment by the Court, to step into the shoes of the cannabis licensee,” explained Casner partner Michael Fencer. “The receiver was then fully authorized to continue the business while restructuring its operations and finances. This case shows that the receivership process can preserve value that would be lost in a business failure or foreclosure.”
The Ermont receivership was the first case processed under regulations recently adopted by the Cannabis Control Commission, and a case of first impression for all parties involved. “Our experience assisting distressed businesses in other regulated and licensed industries provided a great foundation for this engagement,” Morrier said, citing the team’s experience in restructuring private and nonprofit businesses in healthcare, senior living, skilled nursing and affordable housing, among others. Casner attorneys have also represented businesses in the cannabis industry since Massachusetts legalized medical use in 2012, including the nonprofit formation, financing, licensure and eventual successful sale of one of the state’s largest cultivation operations.
About Opus Consulting Partners, LLC
Opus Consulting Partners is a business performance advisory firm that helps businesses and executive leadership teams transform, innovate, and accelerate their operations, creating solutions to empower businesses.
About Casner & Edwards, LLP
Casner & Edwards, LLP represents businesses, individuals and institutions across New England and around the world, providing the core legal services they need to succeed. Clients work directly with a team of expert attorneys, and can expect full attention, seasoned advice, top quality work, and good value.
Herrick Names Belinda G. Schwartz as Executive Chair of the Firm
Herrick, Feinstein LLP is proud to announce that Belinda G. Schwartz has been named Executive Chair of the firm. She will also lead the firm’s Executive Committee.
With female leaders accounting for approximately 10 percent of Am Law 200 chairs and managing partners, Schwartz now becomes one of the few women in the nation currently leading a major law firm. She will also continue to lead Herrick’s powerhouse Real Estate Department.
Schwartz, a 30+ year veteran of New York City’s commercial real estate market, has had a career full of “firsts.” She is the first female Chair of the firm, the first female member of Herrick’s five-person Executive Committee, and one of the only women in the country to chair a major commercial real estate practice.
Schwartz has consistently been recognized throughout her esteemed career, receiving numerous prestigious accolades from legal, business and real estate outlets. She is known as “a role model in her field” and has been recognized for her “pioneer spirit.” Clients describe Belinda as “the ultimate deal-maker” and rely upon her strong business acumen, strategic thinking and problem-solving ability.
“I am honored to have been asked to lead Herrick, my professional home for the last 25 years,” said Schwartz. She added, “I am looking forward to working with my partners to shape the future of our firm. I know I will continue to be inspired by them and our exceptional clients”.
Schwartz succeeds Irwin A. Kishner, who has served as Herrick’s Executive Chairman since 2010. Kishner, who steps down as he reaches his term limit, will continue as a member of the Executive Committee and will continue to lead Herrick’s nationally recognized and highly lauded Sports Law Group.
Irwin noted, “Belinda was the natural and overwhelming choice to lead the firm in 2023. It has been my privilege to serve as the Executive Chair of the firm and to guide a team of remarkable professionals for the past thirteen years. I am proud of what the firm has accomplished during this time and enthusiastic about our future.”
Founded in 1928, Herrick is a prominent, full-service law firm, providing comprehensive legal services to businesses and individuals around the world. From its offices in New York City; Newark, New Jersey; Pittsburgh, PA; and Istanbul, Turkey, Herrick maintains robust commercial real estate, corporate, finance, sports, litigation and financial restructuring capabilities, complemented by significant depth in employment, securities, bankruptcy, government relations, intellectual property, tax, and private clients.
Learn more about Herrick at www.herrick.com.
Additional biographical information for Belinda G. Schwartz and credentials are available here.
TAG Foundation Supports Relief Efforts in Turkey
On February 6, 2023, a devastating earthquake struck southern and central Turkey and northern and western Syria. Since then, nearly 50,000 people in Turkey have lost their lives with millions throughout the region currently experiencing displacement and homelessness. We have been in touch with our longtime TAGLaw member in Turkey, Erdem & Erdem, to gain their perspective about the dire situation in their country.
Last week, the Board of Directors of TAG Foundation (TAG Charitable Foundation, Inc.) approved a $5,000 donation to ShelterBox, a global organization that provides essential shelter and survival supplies in an innovative and sustainable “ShelterBox.” In the past, TAG Foundation and TAG Alliances members have supported ShelterBox in response to natural disasters and other humanitarian crises. At our Spring 2015 International Conference in Edinburgh, Scotland, representatives from ShelterBox even conducted a live demonstration of their “ShelterBox."
In addition to this donation, for the next 30 days, 50% of the donations received by TAG Foundation will be sent to ShelterBox and the remaining 50% will be held in reserve so TAG Foundation can continue to respond to humanitarian crises and other causes as they arise.
Thank you for your continued support of TAG Foundation.
To make a donation to TAG Foundation
- Online by Credit Card - Click here and click the yellow “Donate” button.
- By Check - Make Payable to: “TAG Charitable Foundation Inc.” and Mail to: TAG Alliances; 360 Central Avenue Suite 845; St. Petersburg, FL 33701
- By Wire Transfer - Please email helpdesk@tagalliances.com to obtain wire transfer information.
- In-Person at an International Conference - At every International Conference, we give members the opportunity to donate in person.
TAG Charitable Foundation has been approved as exempt from taxation under 501(c)(3) of the United States Internal Revenue Code and contributions are tax-deductible to the extent permitted by law. TAG Charitable Foundation, Inc. Registration #CH32002
A COPY OF THE OFFICIAL REGISTRATION AND FINANCIAL INFORMATION MAY BE OBTAINED FROM THE DIVISION OF CONSUMER SERVICES BY CALLING TOLL-FREE 1-800-HELP-FLA OR ONLINE AT www.FloridaConsumerHelp.com, REGISTRATION DOES NOT IMPLY ENDORSEMENT, APPROVAL, OR RECOMMENDATION BY THE STATE." TAG Charitable Foundation, Inc. Registration #CH32002
TAGLaw Named an “Elite” Global Legal Alliance for 10th Year by Chambers & Partners
TAGLaw®, the global alliance of more than 160 independent law firms in over 90 countries, has been recognized by Chambers & Partners as "Elite" for 2023—the highest ranking awarded to legal networks and alliances. This is the tenth time TAGLaw has received the distinguished "Elite" designation since Chambers & Partners began ranking legal networks and alliances in 2013.
TAGLaw was also granted the opportunity to provide the guide's annual introduction for the fourth year. In "GLOBAL LAW FIRM NETWORKS: An Introduction to Global Market Leaders," TAGLaw discusses the challenges faced by law firms in 2022 and the importance of belonging to a global alliance or network.
"We are honored to be named an "Elite" international legal network/alliance for the tenth year and to contribute our thoughts to the annual introduction once again," said Richard Attisha, President & CEO of TAGLaw and TAG Alliances. "Over the years, Chambers & Partners has continually acknowledged the reputation of our global alliance and our individual member firms and their lawyers. Our consistent achievement of the highest ranking awarded to legal alliances is a testament to the caliber of our member firms, illustrated by their prominence in their local markets and ability to deliver outstanding client service."
In selecting networks and alliances for their "Elite" status, Chambers & Partners pays particular attention to the quality of the member firms, their global reach, and the value that the alliance provides to its member firms. TAGLaw, with a global footprint in over 90 countries, has over 160 leading firms providing legal services to companies ranging from the Fortune 5000 and leading SMEs to high-net-worth individuals. More than 100 of TAGLaw's member firms have received individual rankings and award recognitions from Chambers & Partners. With expertise in dozens of practice areas and numerous industry sectors, TAGLaw offers a substantial capability to its members' clients. This capability is expanded by TAGLaw's unique relationship with its sister alliances of accounting firms (TIAG®) and strategic partners (TAG-SP®), which together provide exceptional multidisciplinary service and a competitive advantage to businesses that cross geographical borders.