Cannabis & hemp
North Carolina has no general medical or adult-use cannabis program, G.S. 90-94.1 reaches only hemp extract used to treat intractable epilepsy, the one retail cannabis market inside the State’s borders sits on Eastern Band of Cherokee Indians land under tribal law, and the structural decisions made early are the ones a regulator reads years later.
The firm has advised cannabis and hemp businesses since 2013. The recurring lesson is that the expensive mistakes are structural and early: an ownership arrangement that triggers a review nobody planned for, a management agreement that reads as control, a capital structure that a regulator treats as a transfer.
North Carolina’s posture continues to evolve. The firm tracks it and advises on what each shift means for structures that already exist, not just for the ones being built.
What the engagement covers
Licensing and application support
North Carolina has no state cannabis license to apply for, so applications are filed elsewhere, and the entity described in them is the entity a regulator holds an operator to. Applications demand every true party of interest, funding sources, premises control and background disclosures. Rebuilding the cap table after filing usually means an amendment, a further review, and delay that was not built into the timeline.
Ownership changes and transfer structuring
Licensing regimes generally require prior approval before a controlling interest moves, and many count options, convertible notes, profit interests and board rights toward control alongside equity. A transaction can therefore trigger review without a single share changing hands. The work is sequencing: establishing what the regulator will treat as a transfer, then papering the deal so approval precedes closing rather than chasing it.
Regulatory compliance review
P.L. 119-37, enacted 12 November 2025, narrows the federal hemp definition from 12 November 2026: a total-THC standard replaces the delta-9 test, a finished product exceeding 0.4 milligrams per container of total THC combined with other cannabinoids having or marketed as having similar effects falls outside hemp, and cannabinoids synthesized or manufactured outside the plant are excluded regardless of concentration. Inventory, formulation and supply contracts turn on that date.
Supply, distribution and management agreements
Supply, offtake, branding and management contracts are where unlicensed parties can acquire the things a regulator calls control: approval over hiring, pricing, purchasing or product, exclusivity that leaves the licensee no alternative, and revenue shares dressed as service fees. Drafting keeps the commercial bargain while leaving decision rights where the license puts them. Real estate and IP licenses deserve the same reading.
Investor and capital structures
Raising against a licensed entity runs two sets of rules at once. Securities law governs how the offering is made and what is disclosed; the licensing regime governs who may hold an interest, what must be reported, and whether an instrument counts as ownership before it converts. Some regimes also impose residency requirements and disqualify owners with particular criminal history.
Regulator communication
Correspondence with a regulator becomes part of the file and is read again during any later review. Work here covers pre-filing inquiries, responses to deficiency notices, and voluntary disclosure where that is the better course. Within North Carolina the only licensed cannabis market sits on the Qualla Boundary under the Eastern Band of Cherokee Indians' own regulator.
How the engagement runs
- 01
Regulatory positionWhere you stand today, in the jurisdictions that matter.
- 02
Structure recommendationOne path, with the trade-offs written down.
- 03
Filing and transferApplications, transfers and consents executed.
- 04
Ongoing complianceReviewed as the rules move.
Common questions
Can I sell part of my licensed business without triggering a review?
Sometimes, depending on the threshold in your jurisdiction and how the transaction is structured. It is a question worth answering before the deal is drafted rather than after the filing, because the structure is what determines the answer.
Where does North Carolina stand right now?
It continues to move, which is exactly why structures built for today’s rules tend to age badly. The firm tracks the posture and advises on what each change means for what you already have in place.
Do you work outside North Carolina?
Cannabis work is jurisdiction-specific and the firm brings in local counsel where a matter requires admission elsewhere. DPS Law scopes the work, selects co-counsel and stays your point of contact.
Is this only cannabis?
No. The same structural questions come up across licensed and emerging markets where ownership, control and transfer are regulated, and that work has its own page covering telehealth and MSO structures, peptides, physician-owned models, psychedelics, kratom, hemp-derived beverages and digital assets. Cannabis is where the firm has the longest record, beginning in 2013.
License holders, applicants, and investors in cannabis and hemp, including operators expanding across state lines.
Scoped and fixed for structuring and applications. Ongoing compliance on a defined retainer.
A scoped call on what this actually needs, before anything is drafted.
Book a consultation or call (704) 222-4752