On July 17, 2015, a Colorado man was ordered to cease and desist from soliciting investors for his cannabis business on Craigslist. A sale of securities must be registered at the state or federal level unless one can rely on an exemption from both the state and federal securities laws. One needs to not only comply with state law but also federal law when selling securities of your cannabis business. Publicly soliciting the general public to purchase equity in a cannabis business is generally a bad idea.
This is an important reminder to all cannabis businesses out there that not only are you subject to the intensive regulatory regime of the Colorado Marijuana Enforcement Division and local municipalities, but you must also comply with the strict regulatory environment that governs the sale of securities. Ensure you speak with your professional advisors prior to offering any securities for sale.