A Canadian cannabis company has upped the amount of money it raised through a new crowdfunding method aimed at smaller investors, bringing in over 60% than initially reported.
True Leaf Medicine said Wednesday it raised 10 million Canadian dollars ($8.1 million) through a so-called Regulation A+ offering, becoming the first Canadian-listed company in any industry to use the new crowdfunding method.
Based in Vernon, British Columbia, True Leaf announced earlier this month that an initial close of the Regulation A+ offering hit $CA6.2 million.
In a related development, True Leaf said it is in the process of closing a CA$4.1 million private placement of its common stock, selling 5,788,078 shares at a price of 70 Canadian cents per share. The offering involved only Canadian investors.
True Leaf plans to use the money to build a marijuana cultivation facility in Lumby, British Columbia, that’s capable of producing 2,500 kilograms of marijuana by the end of 2018.
Under its Regulation A+ offering, the company got permission from the U.S. Securities and Exchange Commission to sell up to 14.3 million shares at 70 Canadian cents per share.
Regulation A+ is a 2015 SEC rule that allows companies to raise up to $50 million through a wider pool of investors. Companies can advertise the “mini IPOs” on websites and via social media.