Cannabis Company True Leaf Receives SEC Qualification for Equity Crowdfunding Offer Under Reg A+

True Leaf Medicine International Ltd. (CSE: MJ) (FSE: TLA) (OTCQB: TRLFF) has received a qualification notice from the Securities and Exchange Commission for its Regulation A+ Tier 2 Offering Statement. The crowdfunding offer seeks up to CAD $10 million (about $7.8M USD) in an offering that launches today. True Leaf has enlisted the support of Flashfunders, a full stack crowdfunding platform, which is owned by Boustead Securities. Crowdfunding under Reg A+ allows issuers to raise money from both accredited and non-accredited investors thus anyone can participate.

True Leaf is offering a maximum of 14,285,715 common shares at a price of $0.70 CAD per share, with a minimum subscription amount of $350 (or 500 shares) per investor.  True Leaf is being offered to investors in both Canada in the US – one of the very first crowdfunding offers to accomplish this task.

Founded in 2013, True Leaf has applied to become a licensed producer of medicinal marijuana and reportedly has received Health Canada’s approval to build a production facility on a 40-acre site in Lumby, British Columbia, Canada.The facility in BC is expected to have a production capacity of more than 2,500 kilograms of dried cannabis per year when phase one of the project is completed and approved by Health Canada.This can be a very big deal. Marijuana consumption for recreational purposes will become legal across Canada in 2018. The estimated current black market value of recreational marijuana use in Canada is around $7 billion. If True Leaf receives final approval, they could be well positioned to benefit from the changing legal environment. As a reporting company in Canada and trading in multiple markets, receipt of final approval may have an impact on company valuation. Of course, there are no guarantees and True Leaf currently operates a growing pet business. The offering circular is available here.

Currently, True Leaf Pet – a subsidiary of True Leaf, has developed the True Hemp brand of hemp-based pet product lines to be marketed worldwide. This non-psychoactive product supports multiple functions in a soft chew, stick, and oil supplement format for pets. True Leaf says it has tripled its product line over the past nine months and has seen rapid growth in the United States, Canada, and Europe, with a seven-fold increase in sales for the first quarter of 2017 compared to the same quarter last fiscal year.

True Leaf founder and Chief Executive Officer Darcy Bomford says they are very excited about receiving approval from the SEC to sell securities in the US.

“It has been a remarkable nine-month journey and now we’re able to extend a unique opportunity to own a piece of True Leaf to customers, supporters, and investors who share our values and enthusiasm for the potential of our products.”



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