Med-X, a Cannabis related business, has returned to StartEngine with a crowdfunding offer using Reg A+. Med-X was previously listed on StartEngine in 2016 but the offer was pulled from the crowdfunding platform when the company failed to file necessary documents with the Securities and Exchange Commission (SEC). The offering had raised $ 872,548 at the time it was suspended. The Reg A+ offer had been qualified in November of 2015, but Med-X inadvertently did not file an annual report for the fiscal year the offering statement had been qualified. Annual reports on Form 1-K must be filed within 120 calendar days after the end of the fiscal year covered by the report as mandated by law. A subsequent administrative hearing was held earlier this year and the company was then approved to continue with its crowdfunding offer.
During the suspension and nine-month administrative hearing process, Med-X reports it was forced to scale back operations while fighting the suspension order. An eventual decision subsequently ruled in Med-X’s favor and vacated the SEC’s temporary suspension. Judge Jason Patil rejected the SEC arguments and concluded:
“Based on this record, Med-X inadvertently failed to meet its reporting requirements because of a mistake by learned counsel. Upon being advised of that erroneous interpretation, the company embarked on a commendable effort to successfully and expeditiously correct the deficiency. Though reporting requirements exist to provide current and potential investors with important information, the record reflects that investors were not significantly harmed and that a permanent suspension would not only adversely impact Med-X investors, but would unreasonably chill the use of Regulation A to raise capital. As such, the temporary suspension of Med-X’s exemption will be lifted.”
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Matthew Mills, Med-X’s President and Chief Operations Officer commented on the decision;
“Once the initial ruling became a reality, Med-X immediately sprang into action to resume Crowdfunding efforts by preparing and filing a Post-Effective Qualification with the SEC.”
The company said that despite the ongoing distractions that management has been working on their business model with the primary focus being the “Nature-Cide” product line for natural pest control in cannabis cultivation, along with the continued development of the online cannabis industry publication, The Marijuana Times.”
In February of 2017, Med-X commenced another private placement of common stock to Accredited Investors only under Rule 506(c) of Regulation D to raise capital from the sale of up to 5,000,000 shares at $0.60 per share. To date , Med-X has raised a total of $ 28,667 from the sale of 47,778 shares in that offering.
Med-X is seeking to raise up to $15 million in common equity at a price of $0.60 per share via the Reg A+ offer on StartEngine. According to the Offering Circular, following the funding round 117,997,961 shares will be issued and outstanding giving Med-X a valuation of over $70 million.
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