OTCQB Listed Cannabis Company Closes $10 million Reg A+
Last week, True Leaf Medicine International Ltd. (OTCQB: TRLFF) announced that it has raised $10 million (CAD) through a Regulation A+ public equity offering, two months after the SEC qualified its offering statement.
Founded in 2013, True Leaf has two main operating divisions: True Leaf Medicine Inc. and True Leaf Pet Inc. The Company’s goal is to provide federally-approved cannabis products that will be sold across Canada and the United States. True Leaf Medicine Inc. was launched in July 2013 to become a licensed producer of medicinal cannabis for the Canadian market. True Leaf Medicine Inc. has been granted approval by Health Canada to build its grow facility and will be subject to a Health Canada security inspection upon completion to allow for the cultivation, manufacture, and distribution of cannabis products.
True Leaf also announced 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.
In the Regulation A+ offering, True Leaf offered a total of 14,285,715 common shares at a price of C$0.70 per share, with a minimum subscription amount of C$350 (or 500 shares) per investor. The use of Regulation A+ allowed the Company to offer and sell its common shares to public retail investors as well as traditional accredited and institutional investors.
With the offering fully closed, True Leaf is the first Canadian-listed company to conduct a successful Regulation A+ offering.
Boustead Securities, LLC, working with its affiliate, FlashFunders™, was the lead underwriter and bookrunner for the offering. CrowdfundX™ was the digital marketing agency of record.
“I believe True Leaf had some of the ingredients for a successful Regulation A+ equity placement, including offering a product in an emerging market segment of interest to many, and a plan to distribute the securities to different types of investors, some of whom may not have had an opportunity to participate in such offerings before the crowdfunding regulations were enacted,” added Keith Moore, Chief Executive Officer of Boustead.
“We saw what we believe to have been exceptional engagement and click-through rates on the crowdfund campaign, which, in our opinion, was a result of extensive planning and collaboration,” stated Darren Marble, Chief Executive Officer of CrowdfundX.
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