A new crowdfunding method aimed at smaller investors helped a Canadian cannabis company raise 6.2 million Canadian dollars ($4.1 million).
True Leaf Medicine, a company in Vernon, British Columbia, that makes hemp-derived treatments for animals and marijuana products for humans, launched its so-called Regulation A+ stock offering last November.
The company plans to use the money to build a marijuana cultivation facility in Lumby, British Columbia.
The company got permission from the U.S. Securities and Exchange Commission to sell up to 14.3 million shares at CA$0.70 per share.
Investors who wanted to participate in the offering had to buy at least 500 shares, or CA$350.
The company announced last week that it initially closed the offering after selling 8.9 million shares to more than 600 investors.
The shares were sold both on the Canadian Securities Exchange and on the U.S. over-the-counter (OTC) market.
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.
A True Leaf spokesman said the company is the first from Canada to take advantage of the Regulation A+ funding method.