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True Leaf is to sell some shares to the public.
Two months after its offering statement was qualified in the United States, Lumby’s True Leaf Medicine has raised $10 million (CAD) through new “crowdfunding” regulations.
The pot-product producer is now the first Canadian company to conduct a successful Regulation A+ public equity offering.
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.
In the past, True Leaf CEO Darcy Bomford has explained that, 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.
The campaign saw True Leaf offer a total of 14,285,715 common shares, at a price of C$0.70 per share, with a minimum subscription amount of $350 (or 500 shares) per investor.
“We’ve always wanted to give the people who love our products, and share in our vision and values, the chance to own a piece of True Leaf,” Bomford said in a press release. “We believe the proceeds from this offering should put us in an excellent position to execute our business plan and accelerate our growth.”
Previously, Bomford said the $10 million will help grow the company’s pet division, as well as advance its efforts to become a licensed medical cannabis producer in Canada.
True Leaf also announced today it is in the process of closing a $4,051,654.60 non-brokered private placement, selling 5,788,078 common shares at a price of C$0.70 per share to Canadian investors only.
True Leaf also recently secured its plans to buy a $3.3 million parcel of property in Lumby, where it says it plans to build a massive expansion to its current production facility.
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