OTC Markets Group Announces First Canadian-listed Reg A+ Offering on OTCQB Venture Market

OTC Markets Group Inc.(OTCQX: OTCM), an operator of financial markets for ten thousand U.S. and global securities, announced on Thursday that True Leaf Medicine International Ltd. (CSE: MJ) (FSE: TLA) (OTCQB: TRLFF), the first Canadian-listed company, to conduct a successful Reg. A+ offering on its OTCQB Venture market. The company’s common stock notably began trading on the OTCQB market on July 20, 2017.

True Leaf raised CDN $14 million in a cross border offering that saw participation from both US and Canadian investors. Under Reg A+, issuers may sell securities to both accredited and non-accredited investors. According to an earlier report, approximately 339 investors participated in the Reg A+. The concurrent Canadian offering using the OM exemption saw the approximately 195 investors back the company. True Leaf currently sells a line of Hemp based pet products but has filed with the Canadian authorities to receive approval to cultivate Marijuana.

Canada is in the process of legalizing Cannabis consumption for recreational use. Later in 2018, all of the Canadian provinces will allow sales of Cannabis in a regulated environment.

While speaking about True Leaf’s funding round, Jason Paltrowitz, Executive Vice President of Corporate Services at OTC Markets Group, stated:

“We congratulate True Leaf on a successful Reg A+ offering and the expansion of its unique profile to a broader pool of American investors. True Leaf’s $14 million (CAD) Reg A+ offering and private placement demonstrate the quality and effectiveness of both our premium OTCQX and OTCQB Venture markets in facilitating an effective capital raise. This presents tremendous benefits for small-cap, entrepreneurial and emerging sector companies seeking to raise capital–tailoring the needs of being a public company, while providing a cost-effective, less burdensome alternative to a national exchange listing.”

Richard Carleton, CEO of the Canadian Securities Exchange where True Leaf is listed in Canada, then commented:

“Access to US investors at an attractive cost through Reg A+ is a key advantage for Canadian reporting issuers. The True Leaf Reg A+ financing should serve as an important model for their peers.”

OTC Markets also reported that the OTCQB Venture Market is designed for early-stage and developing U.S. and international companies. To be eligible, companies must be current in their financial reporting, pass a minimum bid price test, and undergo an annual company verification and management certification process. The organization added:

“The OTCQB quality standards provide a strong baseline of transparency, as well as the technology and regulation to improve the information and trading experience for investors.”


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