XDATA – October 3rd 2014
PharmaCann disclosed raising $20 million as part of a non-brokered equity private placement. One investor acquired the securities on September 18th. No offering was previously initiated by the company under a registration exemption with the SEC.
The company is a developer of medical marijuana cultivation centers and dispensaries. The company holds a license to operate in Illinois under the State’s Compassionate Care Act and has been applying for multiple licenses in Ottawa Canada.
PharmaCann, registered in 2014, is headquartered in Oak Park IL. It is led by Teddy C Scott (CEO). The company reported having no revenues.
The executive team includes Christina D Leja, John A Leja and Norah Scott.
The board of directors includes Stephen G Schuler.
Amount offered: $20 million
Amount placed: $20 million
First sale: 09-18-2014
Data as of: 10-03-2014
The cannabis industry initiated 23 private placements during Q3 14 offering $114* million worth of securities to qualified and accredited investors as well as QIBs. The companies disclosed having raised at the time of filing $35.4 million or roughly 1/3rd of their placement. XDATA broadly classified companies in categories, namely producers and associated activity focusing on the trade (distributors, exchanges etc…). Producers raised on average $2 million per deal which is slightly higher than companies in associated activities. It certainly seems professional smart money is putting some skin in the game based on the categories’ leaders.
On the producer side, Mettrum, a Health Canada licensed producer of medicinal cannabis, lead the pack placing $4.2 million with US investors. The company initiated a reverse take-over in June to list on TSX Venture and completed the transaction two days ago. The company raised gross proceeds of $34.5 million from the private placement which was completed by a syndicate of agents led by Cormark Securities and including GMP Securities, Paradigm Capital and Jacob Securities.
In the other category, Privateer Holdings placed $18.7 million. Privateer is a private equity firm making strategic investments in the cannabis industry to acquire and create mainstream brands, professionalizing the cannabis business landscape. The company is backed by Ivy League MBAs, marketing professionals, and federal law enforcement professionals. The company is currently invested in Tilray (a premium brand of medical cannabis) and Leafly (an online information resource for cannabis consumers).
|Royale Leisure Industries||1||1,000,000||500,000|
|Phoenix Pharms Capital||1||2,500,000||126,000|
|Colorado Cannabis Exchange||1||100,000||10,000|
|Green Star Growing||1||5,000,000||950,000|
|Waveseer of Las Vegas||1||8,730,000||200,000|
|Pure Natures Wellness||1||40,549||40,549|
*offered by US based companies or to US based investors. If the company is located outside the US only the portion of the placement allocated to US investors is taken into account.
XDATA – September 30th 2014
Cresco Labs placed $4 million worth of securities as part of a non-brokered equity financing round. The placement, which started a couple of months ago, lured a total of eleven subscribers. No offering was previously initiated by the company under a registration exemption with the SEC.
Cresco Labs develops a state-of-the-art, highly secure medical marijuana facility to provide quality, standardized medical products for Illinois medical patients.
The company was registered in 2013 and has its headquarters located in Chicago IL. Cresco Labs elected to keep its revenues undisclosed.
The executive team includes Dominic A. Sergi and Kayvan Khalatbari.
Company: Cresco Labs
Amount offered: $4 million
Amount placed: $4 million
First sale: 07-21-2014
Data as of: 09-30-2014