A local company’s bid to raise millions of dollars through new “crowdfunding” regulations in the United States is one step closer to reality.
True Leaf Medicine International, the rapidly growing Lumby company that makes hemp-based treats for pets, has submitted documents to the US Securities and Exchange Commission that detail what their investment offering will look like.
According to True Leaf CEO Darcy Bomford, the company hopes to raise $10 million through new Regulation A+ financing.
Regulation A+ is like kickstarter-style crowdfunding on steroids. It allows larger companies to bring in cash from scores of new investors by offering up shares to essentially anyone who wants them.
As Bomford points out, that’s a big deal. Normally, only accredited investors can purchase equity in a company, meaning it’s primarily a privilege for the wealthy.
Regulation A+ removes that barrier, allowing anyone and everyone to get a piece of the pie.
“So if you have a dog and you’re making 100 grand a year, you can invest and buy shares in our company,” Bomford told Okanagan Edge earlier this year.
Bomford says the $10 million True Leaf hopes to raise will help grow the company’s pet division, as well as advance its efforts to become a licensed medical cannabis producer in Canada.
Late last month, True Leaf announced its plans to spend $3.3 million on 40 acres of land in Lumby, as part of a massive expansion of its production facility.
At the time, Bomford said the expanded facility could reach as large as 1,000,000 square feet, and produce more than 125,000 kilograms of cannabis.
True Leaf’s Paul Sullivan has told Okanagan Edge $7 million of the $10 million True Leaf hopes to raise has been earmarked for that facility.
Once True Leaf’s Regulation A+ offering has been qualified by the SEC, the offering will be made available to the general public to invest in True Leaf.
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