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
One financial backer invested $516,000 in return for unregistered equity securities issued by GrowLife. The transaction completed a little over a week ago via a non-brokered private placement. The company closed three previous unregistered private placements which raised an estimated $42.5 million.
GrowLife trades under symbol OTC: PHOT.
GrowLife markets products and services addressing the needs of legal cannabis growing and retail operations, including hydroponic growing equipment and retail support software. The company provides these solutions through a nationwide retail network, as well as online sites Greners.com, Phototron.com, Growlifehydroponics.com, 58hydro.com and StealthGrow.com. The Company offers financial support and consulting services to help growers expand their businesses. The company also operates the political and social forum, Cannabis.org.
The company, headquartered in Woodland Hills CA, is led by Marco Hegyi (President). GrowLife elected to keep its revenues undisclosed.
The board of directors includes Jeff Giarraupto, Mark E Scott and Tony Ciabattoni.
The company has raised an estimated total of $43.02 million via private unregistered security offerings.
Industry: Other Technology
Amount offered: $516,000
Amount placed: $516,000
First sale: 06-04-2014
Data as of: 06-12-2014
In a document filed with the SEC, Indoor Harvest reported still being in the market with its $500,000 equity offering which is 43% subscribed as of the filing date. Prior investors ponied up an additional $30,000. They had previously subscribed to $190,000 in securities according to another filing disclosed last Thursday. So far, twenty-six backers committed $220,000 to Indoor Harvest’s offering. Based on the offering’s structure the subscription is scheduled to close in six months at the latest. The company closed one unregistered private placement which raised an estimated $50,000.
The company is an equipment designer, developer, marketer and direct-seller of commercial grade aeroponic fixtures and supporting systems for use in urban controlled environment agriculture (CEA) and building integrated agriculture (BIA). It offers individual original equipment manufacturer (OEM) fixtures and value added components that can be combined in a variety of ways allowing full customability of installation. Indoor Harvest is focusing on the underserved middle market between hobby and large scale operations.
The company, headquartered in Houston TX, is led by Chad Sykes (CEO). Revenues were not reported.
Status: Intermediary close
Company: Indoor Harvest
Amount offered: $500,000
Amount placed: $220,000
Change: offered +0% / raised +13% / placed 43%
Freight Farms announced the first close of its $2 million equity placement which occurred in mid November. Twelve investors subscribed to $1.2 million or 61% of the offering.
Freight Farms uses modified shipping containers for high yield crop production. Units are outfitted with advanced climate technology that creates optimal growing conditions needed to maximize the harvest. According to the company, the system delivers high quality production at a low cost of operation and uses a fraction of the energy compared to traditional and greenhouse production. Most importantly, it is designed to grow fresh food in urban centers as its installation does not require redevelopment, it can also be stacked to scale-up production without using a larger footprint. According to the Wall Street Journal, the company sells each unit for $60,000 and had revenues amounting to $500,000 since its launch in 2013. The company is currently selling the turnkey containers to grow leafy green, “Vine Veggie” and “Fresh Fungi” are in the works.
There seem to be an increasing number of companies offering solutions to feed an ever growing population of urban locavore. PodPonics which raised $100,000 last June has been developing a similar idea since 2010 and Green City Growers, a MassChallenge alumni looking to expand outside of Boston, transforms unused space such as rooftops into urban organic farms.
Freight Farms, headquartered in Boston MA, was founded in 2013 by Brad McNamara and Jonathan Friedman. The Board of directors includes Reenie McCarthy who is related with the Morningside Group a family office making private equity and venture capital investments.
Status: First close
Company: Freight Farms
Amount offered: $1,954,576
Amount placed: $1,204,576
First Sale: 11/19/13
PodPonics, Inc. closed on $100,000 equity financing out of an expected $162,500 offering. Eleven investors participated to the non-brokered placement. This brings to $1.35 million the amount raised by the company since the beginning of the year via equity issuance. PodPonics disclosed generating revenues between $1 and $5 million during the last fiscal year.
PodPonics grows lettuce and micro-greens (like watercress) in urban centers using an approach that does not require arable land. The company responds to the year-round demand for locally-produced natural whole foods by growing greens at or near the point of consumption. It does so by converting shipping containers into modular controlled-environment growth pods thereby substantially reducing the carbon footprint, providing scalability based on the local demand and flexibility to optimize the environment for a given crop. The company does not use pesticides and the water and nutrients used are recycled.
The company, located in Atlanta GA, was founded by Matt Liotta (CEO) in March 2010. The executive team includes Harry Riggs (VP Global Business Development), Jonathan Hehn (Chief Grower) and Adam Johnston (Field Sales Manager). Richard Weinstein from Caldera Capital Group has a sit on the board of directors.