Business
Mistakes in Oregon Cannabis Business Sales
We have been helping people buy and sell Oregon cannabis businesses since the early days of the adult use market. Most of these sales are relatively simply asset purchase agreements—including many for naked licenses—but some have been stock sales. Others have taken place amid administrative enforcement action by the Oregon Liquor and Cannabis Commission (OLCC). This post and my next post will cover mistakes commonly made in these sales.
Lazy diligence
Buyers of Oregon cannabis businesses don’t need to do an extraordinary amount of diligence—especially outside of stock sales—but it’s wise to do some, starting with a public records request on the seller. I can’t tell you how many times we have seen people try to sell things that aren’t actually saleable– either because they do not own them, or because the business is mired in an OLCC enforcement proceeding, or because the item at issue (i.e., a pending application) isn’t transferrable as a matter of administrative law.
Sellers should also consider doing some diligence on Oregon cannabis business buyers. On several occasions, we have seen people assume they can purchase a business and transfer its license to a location that doesn’t work. We have also seen sellers agree to carry financing on sales with buyers who could not pass even basic underwriting muster. One buyer literally defaulted under the first monthly payment on promissory note, 30 days after close. That was sort of incredible; but it was also avoidable had the seller done some basic vetting.
Finally, diligence and monitoring may often extend after a purchase agreement is signed, and through the closing period. Aside from general business or financial inquiry rights the parties may negotiate, it’s important for a buyer to require a seller to timely notify it of any potentially adverse OLCC action during the pre-closing period. Sellers, in turn, should require that a buyer submit to OLCC a “Licensed Representative Authorization” form, authorizing the seller or its lawyer to receive information about the buyer’s license application. These are just a few examples to ensure things remain on track.
Sleeping on inventory
I’m amazed at how many forms I come across that give cursory treatment—or no treatment at all—to inventory matters. Inventory is very important! Sellers want to ensure they can liquidate their METRC prior to handing off the business, whether to the buyer or via a separate sell-down process. A buyer, alternatively, may want to ensure that a seller operates its business in the ordinary course with respect to inventory practices prior to close. The parties may also agree to assign a base inventory value in the purchase agreement, from which closing adjustments can be made.
Inventory may be purchased per a stand-alone inventory purchase agreement at closing, or wrapped in with other assets in a bill of sale exhibit. Pricing is typically tied to seller’s wholesale cost, but other metrics may be used. In any case, it’s important for buyers and sellers to coordinate on the physical count (by seller) and any audit (by buyer) at changeover. Failure to outline basic inventory terms can result in negotiation long after close, or even litigation. No one wants that.
Using a services agreement
A few months back I wrote a post called “Oregon Cannabis: Beware the Services Agreement.” I began that one by stating that services agreements are a problem in the Oregon cannabis industry. Feel free to click through for all the gory details, but the big takeaway is that these agreements add arbitrary and significant risk for sellers (up to and including license cancellation). Most of these agreements are badly drafted and loosely followed to boot. Stay away! Or, if exigent circumstances require a services agreement, make sure you really dial in the form and that both parties adhere to its terms closely in the pre-closing period.
Unclear deadlines
A well drafted cannabis purchase agreement will be marbled with deadlines for buyer and seller. Some of these deadlines will apply to both parties, as in the case of a “drop dead date” after which the transaction may be terminated. Other deadlines will relate to specific, required actions by one party or the other. The buyer, for example, should be required to submit OLCC and local land use compatibility statement (LUCS) applications within a short period after signing the purchase agreement. The seller should be required to submit OLCC “Change in Ownership” forms shortly after that.
We’ve had parties come to us for purchase agreement enforcement long after execution, where the buyer literally never submitted basic OLCC paperwork. We’ve seen others agree to large earnest money payments with no funding or return deadlines, causing disagreements. All of these dates and deadlines should be present in the purchase agreement, calendared, observed and enforced by the parties. You want a smooth roadmap and process here.
Source: https://harrisbricken.com/cannalawblog/mistakes-in-oregon-cannabis-business-sales/
Business
Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light
Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).
The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.
India’s Indigenous LEO Satellite Vision
Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.
The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.
According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.
The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.
Regulatory Process Moves Forward
Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.
The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.
Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.
Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.
Broadband, Mobile Connectivity, and Strategic Applications
Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.
The company also intends to establish 20 to 22 ground stations across India to support network operations.
Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.
Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.
Major Step for India’s Space and Telecom Sectors
Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.
The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.
Business
Alleged Crores Pharma Scam Mastermind Arrested from Surat
After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.
Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.
Fake Business Deals and Dishonoured Cheques Used in Fraud
Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.
In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”
Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.
Multiple Identities and Repeated Fraud Pattern
Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.
Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.
Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.
Multi-State Surveillance Leads to Arrest in Surat
A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.
Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.
Growing Threat of Corporate Identity Fraud
The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.
Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.
Experts Urge Stronger Due Diligence in High-Value Transactions
Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.
Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.
Business
EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices
A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.
Investigation Under Digital Markets Act Gains Momentum
The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.
Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.
Industry Groups Demand Swift Action
Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.
Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.
In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.
Google Denies Allegations
Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.
However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.
Potential Billion-Euro Penalties
If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.
Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.
Wider Implications for Big Tech
The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.
A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.
As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.
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