Canadian marijuana company nets CA$10M through crowdfunding effort

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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 CA$6.2 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.

True Leaf’s shares trade on the Canadian Securities Exchange under ticker symbol MJ and on the U.S. over-the-counter market as TRLFF.