Atlanta Company Grows Cannabis—and Its Legal Team
The GC said with expanding vertical operations that run from cultivation, processing, manufacturing and selling, "We do use a lot of outside counsel."
August 16, 2019 at 11:36 AM
3 minute read
The original version of this story was published on Daily Report
Sarah Loya, the general counsel of Atlanta-based cannabis company Surterra Wellness, says when she is asked what kind of legal needs she faces, her stock answer is—"every one of them."
That makes sense for a company aiming to be a major player an industry with explosive growth around the country—all while the federal government and a shrinking number of states consider trafficking in its main product to be a criminal act.
Surterra doesn't seem bowed by the patchwork legality of cannabis. The company says it is nearing 2,000 employees, with active operations in Florida, Texas, Nevada and Massachusetts, with plans to enter California soon.
The company boasts nearly 1 million square feet of cultivation space and 30 retail dispensaries, including 26 in Florida.
Loya joined the company last year from a partnership at Nelson, Mullins, Riley & Scarborough, where she worked with clients on corporate matters, especially venture capital, mergers and acquisitions and financing transactions.
Loya said she had several clients in cannabis, including Surterra, which she started working with in 2017. She said the company stood out. Where other companies viewed themselves "like restaurants," Surterra was dedicated to becoming a leader in the industry.
Loya oversees three other lawyers and a paralegal. She recently hired a deputy GC—Lauren Linder, who started this week after a four-year stint at The Weather Channel.
Last year Linder became the network's de facto GC when her boss was promoted. "They're hiring," she said when asked who was replacing her at The Weather Channel. The company did not respond to a request for comment.
Like Loya, Linder said she was excited to be working at the forefront of a new industry. "I'm walking around here with a big smile on my face," she said Wednesday, her third one on the job.
Linder said her duties had yet to be completely determined, but she'll be Loya's "right hand" and expects she'll be involved in deals, intellectual property and litigation management.
Loya said with expanding vertical operations that run from cultivation, processing, manufacturing and selling, "We do use a lot of outside counsel." She declined to name firms working for Surterra, saying that some firms may not want their work publicized, given how cannabis is still a sensitive topic.
Along those lines, regulatory matters will be important, both said.
Banking has been particularly challenging for cannabis companies. According to CNBC, [r]egardless of whether a state has legalized pot, financial institutions that work with the cannabis industry are still running afoul of federal law, putting them at risk of federal money laundering or racketing charges. This prevents growers, dispensaries and other cannabis companies from accessing basic banking services like taking credit card payments and depositing their money."
"Hopefully a change on that will come on the federal side," Loya said.
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