Mainvest Crowdfunding Platform Raises Capital for Marijuana Businesses of All Sizes

The cannabis industry is a difficult one to start a business in, especially for mom-and-pop shops and social equity applicants. However, Mainvest is aiming to change the landscape by welcoming marijuana businesses of all sizes to raise capital in the form of investment from their community.

So, what is Mainvest? Mainvest is a regulation crowdfunding platform that allows non-accredited investors to crowdfund small, brick-and-mortar enterprises thanks to Title III of the JOBS Act. Before this legislation passed, only accredited investors—with a net worth in excess of $1 million—were allowed to invest in private companies. Now, the platform allows anyone with a bank account to invest in cannabis with as little as $100.

Mainvest assists small companies to compete against big retail chains and has seen a significant increase in interest from cannabis enterprises in recent months. CEO Nick Mathews notes the platform differs from other sources of funding in that, “We enable capital access from the community to give cannabis entrepreneurs competing against large private equity and venture-funded conglomerates a path to fund and grow their enterprise.” Before adding cannabis to the repertoire, Mainvest has and continues to work with Main Street businesses like breweries, restaurants, retail shops, and salons, and is now entering the cannabis space.

@loudgirlgoodies is an edibles brand based in Boston, MA, and their campaign can be found at https://mainvest.com/b/loudgirlgoodies-boston.

As for similarity to the other businesses they work with? Mainvest knows marijuana businesses are far from a restaurant or brewery in terms of complexity. To compensate, Mainvest offers further risk disclosures for cannabis firms and requires an existing banking relationship of anyone wanting to raise.

How do you get involved? The time to invest in cannabis is now. Mainvest allows anyone with as little as $100 the ability to buy Revenue Sharing Notes in projects like dispensaries, cultivators, edibles, cannabis brands and more. Aptly named, Revenue Sharing Notes entitle investors to a share of revenue the businesses they’ve invested in may generate until either the note is paid back, with interest, or it reaches maturity and needs to be paid in full. For example, if an investor invests $100 in a business with a 3x target return, that investor is entitled to be repaid a total of $300 in increments over a set period of time, paid out as a percentage of revenue, or the the balance at maturity.

As for any investment offering on the platform, Mainvest cautions investors about the risks they take, and reminds investors that it is not guaranteed a business will ultimately be successful or generate revenue. To get started investing in cannabis, head to mainvest.com/businesses where you’ll be able to see all offerings in the marijuana industry that are accepting investment.

Mainvest
Eastcoasterdam is a cultivation and extraction brand based in Winchendon, MA and their campaign can be found at https://mainvest.com/b/mantis-management-group-llc-winchendon.

Ok, so how does it work for cannabis entrepreneurs? Growing a cannabis business with Mainvest means access to capital with terms set by the business owners, not private investors . The platform enables entrepreneurs to grow their roots by raising up to $5MM in funds from both accredited and non-accredited investors in their networks or across the country.

The platform itself is incredibly user-friendly, allowing businesses to connect directly with potential investors in a number of ways. Mainvest is comprised of an all-in-one investor relations tool that allows for communication both during the fundraising campaign and the lifetime of the repayment. Unlike companies publicly listed on the stock market, businesses raising on Mainvest are easily accessible by investors, forging stronger connections between investors and local businesses.

In addition, Mainvest allows every business to set their own terms that make sense for long-term growth and increased customer loyalty. Thanks to the Revenue Sharing Note, repayments are always based on revenue, not equity, meaning that there is never any dilution of ownership nor personal guarantees or credit checks. You can check out the plethora of successful small businesses that have used Mainvest to start or grow by visiting the company’s Funded Gallery.

Mainvest
Eastcoasterdam is a cultivation and extraction brand based in Winchendon, MA and their campaign can be found at https://mainvest.com/b/mantis-management-group-llc-winchendon.

What is a Revenue Sharing Note? In order to make access to capital easier for small business, Mainvest needed a way to keep capital flexible for businesses, yet profitable for investors. This is where the Revenue Sharing Note trumps other investment platforms. Instead of offering equity, Revenue Sharing Notes allow cannabis businesses to share a fixed percentage of revenue with investors each quarter. Because of the platform’s flexible nature, businesses choose the percentage of revenue (and all the other terms) to offer investors.

How complex is the process? Mainvest is a full service platform, meaning they hold a businesses’ hand every step of the way. In fact, they even have a dedicated Business Success team existing solely to ensure every offering reaches its target. From handling the SEC filings and setting up an escrow account to pitch coaching, press strategy, digital marketing tools and more, the Mainvest team helps with it all.

What’s next ? Since the launch of Mainvest’s pilot cannabis project, Eastcoasterdam Gardens, the platform has seen an influx of sign-ups from marijuana companies looking to raise capital. Just last week, @loudgirlgoodies, a plant-based edibles company located in Boston launched an offering and a few more expected to go live this week. In addition, a number of news outlets across the country have written on what Mainvest is doing for cannabis entrepreneurs, including Politico and Cannabis Business Times. In the words of CFO Ben Blieden, “Mainvest has solved the age old problem of funding for cannabis businesses, a problem that has no other solution at the moment.”

Mainvest
Diem Cannabis is a delivery brand preparing to build out a fifth location in Springfield, MA, and their campaign can be found at https://mainvest.com/b/diem-cannabis-worcester.

In talks with 50 to 60 other marijuana businesses, CEO Nick says they are “all in” when it comes to cannabis. Just this past weekend, the team attended NECANN (New England Cannabis Convention) to spread the word on this new viable capital route for cannabis entrepreneurs. Stay tuned to what they are up to by following along on Instagram (@mainvestinc) or any of their socials.

Interested in raising capital for your marijuana business? Visit mainvest.com/for-businesses/cannabis and sign up for a profile. If the team thinks you’re a good fit for the platform (and you think they’re a good fit for your business), they’ll be in touch.

The post Mainvest Crowdfunding Platform Raises Capital for Marijuana Businesses of All Sizes appeared first on High Times.

Why Magic Mushroom Stocks are 2021’s New Pot Stocks

It’s not news that pot stocks gave investors some sweet returns in 2020, but not everyone got to the party on time. If you feel like you missed the boat on the cannabis boom. There might be an exciting new investment opportunity in the world of medicinal drugs in form of magic mushroom stocks. Although […]

The post Why Magic Mushroom Stocks are 2021’s New Pot Stocks appeared first on Latest Cannabis News Today – Headlines, Videos & Stocks.

7 Financial Implications of the Biden Administration

Vaccines are being rolled out across the globe, Trump has been banned from Twitter, and Joe Biden is officially president of the United States. The future is looking bright.  The 46th president of the United States has already had a groundbreaking influence on the stock market, with the S&P 500 index having the biggest gain […]

The post 7 Financial Implications of the Biden Administration appeared first on Latest Cannabis News Today – Headlines, Videos & Stocks.

Starting a Delta 8 THC Business: Risks and Rewards

In case you haven’t heard, Delta 8 THC business has been the talk of cannabis industry stakeholders for a few months now, but is it a worthwhile investment or just a risky move?

To understand if investing in Delta 8 thc is a smart business move, you will first need to understand: What is Delta 8 THC and what is its legal status in the United States? Let’s quickly get a few of those main, burning questions out of the way.

Is it legal? For the record, Delta 8 THC IS legal where it’s sold, although the specifics there are bit hazy. Next, does it get you high? Yes, it does, although the psychoactive effects are not as strong as with the Delta-9 THC that most of us are used to. Is it worth it? YES, when bought in bulk from the right manufacturer, you can expect a huge markup on retail pricing, so you will make a lot more than what you bought it for.


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Let’s dive deep and explore all of these topics in some serious detail. However, before we move on, please subscribe to our DELTA 8 newsletter below, and learn more about the products currently available at the market today.

What is Delta 8 THC?

Although it wasn’t so commonly discussed until recently, Delta 8 has been studied for decades and it’s one the four most prevalent cannabinoids in the cannabis plant. As expected, it is similar to Delta-9 THC, but there are differences in the chemical structure of this compound. Delta 8 THC is what’s known as a cannabinoid analog, also referred to as a structural analog or chemical analog. An analog is a compound that has a similar structure to another compound but with some key distinction.  

Think about water, for example, with the chemical formula H2O. This is two hydrogen atoms and one oxygen atom. Water is vital for all forms of life on Earth. If we were to simply add one oxygen atom to this molecule, we would have Hydrogen Peroxide, and drinking that can be fatal.

The efficacy and stability of delta-8-THC make it an extremely valuable cannabis-derived chemical compound. Just like Delta-9 THC, Delta-8 also has some psychoactive properties (less than Delta 9) and some similar medical benefits, although research indicates that it can also be used to shrink tumors and reduce symptoms of nausea in chemotherapy patients.

Cannabis plants only have trace amounts of Delta 8, so companies are extracting this compound and infusing it into various items. Most commonly, it can be found in pre-filled vape cartridges, Delta 8 THC softgels or consumable tinctures.

Is it Legal?

Now this is where things can get confusing. Is Delta-8 THC legal? The answer is, technically yes, but only in certain states/regions. The following points describe when Delta-8 may be legal and when it is unlikely to be, however, keep in mind that the laws can vary greatly.

Delta-8 THC is likely LEGAL in:

  • Any country/state where cannabis is legal, delta-8 is legal. This should go without saying, but if the cannabis plant and all its parts and components are no longer prohibited, then delta-8 will obviously be legal as well.
  • Any country/state where THC and analogues are legal and approved for medical use, delta-8 products are legal – with the correct prescription. This applies as long as a medical system does not exclude THC and its analogues, or require minimal amounts in products of no more than .2% (Europe) or .3% (US).

Delta-8 THC is likely ILLEGAL in:

  • Any country/state that illegalized all forms of cannabis, delta-8 is illegal. This is because, in this scenario, all parts and compounds found in the cannabis plant are illegal.
  • Any country/state where THC and analogues are illegal, as well as industrial hemp and hemp flowers, then delta-8 is also illegal. This is because all possible places the delta-8 could be sourced from are prohibited.

In any state/country where THC and analogues are illegal, but the sale of industrial hemp products is legal and regulated independently, delta-8 enters a gray area with a possible legal loophole. Meaning it’s technical not prohibited, yet. Keep in mind though, that if any country or state fits into one of the scenarios above, but has wording in their laws that more specifically bans THC and analogues, then the loophole does NOT apply and Delta-8 is likely illegal still.


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Is Investing in Delta 8 THC is Good For Your Business?

If you made it this far, you’re likely on board with Delta 8. So let’s quickly cover why investing in Delta-8 THC could be a great business move for you.

  1. First and foremost, it’s legal in most states (42 to be exact). Even though it’s prohibited in some areas or stuck in a legal limbo in others, it is certainly much less regulated than Delta-9 THC.
  2. It’s in extremely high demand. For obvious reasons – health benefits, slight high, legal status – but it’s also great for patients who have found CBD therapy to be unsuccessful.
  3. There is a huge retail markup when purchased from the correct source. For example, we can source you Delta 8 vape cartridges, Delta 8 softgels and Delta 8 tinctures for an extremely low per-unit price, so you will be able to make a good profit when you sell these products individually. Subscribe to the CBD Flowers Business for pricing!
  4. Investing in Delta 8 THC will set you apart from the competition. Yes, Delta 8 is a common topic of discussion in the industry these days, but it’s still relatively difficult to find in shops and online stores. Having it readily available make you distinguishable from the other retailers selling only CBD products.

Final Thoughts

There is so much more to say about this amazing compound, from both a medical and business aspect. In my opinion, investing in Delta 8 THC is a great business opportunity that can have wonderful benefits for your consumers by providing them access to therapeutic compound that’s legal yet difficult to obtain.

Interested in sourcing DELTA 8 THC products? Subscribe to the CBD Flowers Business for pricing!

The post Starting a Delta 8 THC Business: Risks and Rewards appeared first on CBD Testers.

Wednesday, November 20, 2019 Headlines | Marijuana Today Daily News

Marijuana Today Daily Headlines
Wednesday, November 20, 2019 | Curated by host Shea Gunther

// Chart: Oklahoma medical marijuana sales far exceed expectations (Marijuana Business Daily)

// Congress takes a historic first step on national cannabis legalization (Leafly)

// Colorado Supreme Court Rules Convicts Can Use Medical Weed While on Probation (Merry Jane)


These headlines are brought to you by Curaleaf, one of the leading vertically-integrated cannabis operators in the U.S. With legal medical marijuana dispensaries, cultivation sites, and processing facilities all over the United States, Curaleaf has served more than 165,000 medical cannabis patients and looks forward to helping many more long into the future. Swing over to Curaleaf.com to learn more about this very cool company!


// LA Cannabis Director Says Audit of Social Equity Program to Begin (NBC Los Angeles)

// Are you getting the CBD you paid for? We put 47 products to the test (Leafly)

// DA likely to drop case clouded by marijuana-hemp confusion (ABC Fox Montana)

// Curaleaf Q3 Revenue Grows 189% to $61.8 Million (New Cannabis Ventures)

// 94% of Holders Opt to Convert Aurora Cannabis Debt (New Cannabis Ventures)

// Investors Remain Confident in Cannabis Industry (Cision PR Newswire)

// Michigan awards first marijuana licenses paving, way for Dec. 1 sales (Detroit Free Press)


Check out our other projects:
Marijuana Today— Our flagship title, a weekly podcast examining the world of marijuana business and activism with some of the smartest people in the industry and movement.
Marijuana Media Connect— A service that connects industry insiders in the legal marijuana industry with journalists, bloggers, and writers in need of expert sources for their stories.

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Photo: Woodleywonderworks/Flickr

Cannabis ETF Diversifies Risk for Investors

With the legal cannabis market expected to hit more than $66 billion by the end of 2025, many investors are ready to try to take advantage of the new sector. But with that explosive growth comes a lot of volatility and the risk of an unproven industry, two factors that can scare away many potential investors. To help manage and mitigate some of that risk, several exchange-traded funds (ETFs) have been launched to help diversify investment in the industry.

Matt Markiewicz, the managing director of investment company Innovation Shares, told High Times that his firm’s new Cannabis ETF (THCX) can serve as an entryway into the marijuana industry to investors at any level.

“The beauty of an ETF is that it’s the most democratized investment vehicle on the planet,” Markiewicz said in a telephone interview. “My grandmother can buy five shares or you can have a pension fund buy $15-20 million in one trade. So it really spans the gamut of who can buy. We’re looking to appeal to any investor that wants to get exposure to cannabis.”

Managing Volatility and Risk

However, he adds, many potential investors are leery of the new opportunity because they don’t understand just how varied an industry cannabis has become.

“One of the challenges in explaining the cannabis investment case to investors, especially financial advisors, is to convey that cannabis is more than just growing and selling pot,” says Markiewicz. “There are a lot of other businesses that are involved in the industry that don’t necessarily involve the retail aspect of it.”

Cultivation and retail are just the ends of the cannabis supply chain. In between are other firms who add value to the product such as extraction operations and testing labs. Ancillary companies including packaging businesses and fertilizer manufacturers are increasing sales for the industry without touching the plant. Even some pharmaceutical makers are part of the sector as they seek to produce FDA-approved medications that harness the therapeutic value of cannabinoids.

Companies like these with a market capitalization of at least $100 million are candidates for inclusion in the Innovation Labs Cannabis Index, which is the basis for the passively-managed Cannabis ETF. Investments in the various subthemes within cannabis help the fund realize the growth capable in all aspects of the industry while diversifying the portfolio.

“Exposure to a broad range of companies involved in the cannabis ecosystem is what we’re trying to achieve with THCX,” explains Markiewicz, adding that “the idea is that you’re building a portfolio that investors can feel good about from the diversity as well as a size and liquidity perspective.”

Passive vs. Active Management

Innovation Shares’ decision to passively manage the Cannabis ETF by following the index with a monthly rebalancing eliminates the temptation for an active manager to overreact to the volatility inherent in the cannabis industry.

“By removing a lot of the human emotional bias out of the decision-making process,” says Markiewicz, “we feel it’s a more efficient way to get access to what is a very volatile sector.”

With “this systematic rules-based approach to rebalancing, we […] will better serve investors who are looking to eliminate the volatility often associated with cannabis investing,” he explains.

Historically, he adds, actively-managed funds haven’t proven to be a better investment than those that follow an index.

“Active management over the long-run has not proven to generate any outperformance, and most times, the active management strategy charges a higher fee,” says Markiewicz. “So, not only is it underperforming, but you’re paying more.”

Markiewicz notes that even investors who don’t believe the hype and think that stock prices in the marijuana sector are headed lower have an opportunity to make money with the Cannabis ETF by taking a short position in the fund.

“Whether you have a view on cannabis and you want to be long in the stocks because you think there’s good value at that point in time in the sector or if you think the sector is overvalued, you can also short our ETF, too. So from the long or short perspective, it’s a very efficient capital markets tool to express a view on cannabis.”

Shares of the Cannabis ETF, which trades on the NYSE Arca Exchange, were trading at $22.32 per share on Wednesday morning, down more than 5% from Tuesday’s close.

The post Cannabis ETF Diversifies Risk for Investors appeared first on High Times.

Wednesday, March 6, 2019 Headlines | Marijuana Today Daily News

Marijuana Today Daily Headlines
Wednesday, March 6, 2019 | Curated by host Shea Gunther

// FDA Commissioner Resigns, Leaving CBD Status Uncertain (Leafly)

// Medical Marijuana Bill Passes Georgia House, on to Senate (U.S. News & World Report)

// Legal Cannabis Created 211,000 Full-Time Jobs (Leafly)


These headlines are brought to you by Curaleaf, one of the leading vertically-integrated cannabis operators in the U.S. With legal medical marijuana dispensaries, cultivation sites, and processing facilities all over the United States, Curaleaf has served more than 100,000 medical cannabis patients and looks forward to helping many more long into the future. Swing over to Curaleaf.com to learn more about this very cool company!


// Marijuana Stocks: Aurora Cannabis Will Be The First Profitable Pot Company, Cowen Says (Investor’s Business Daily)

// New Jersey Governor Includes Legal Marijuana Revenue In Budget Proposal (Marijuana Moment)

// New contract appeal may further delay Maine’s rollout of marijuana sales (Central Maine)

// Hawaii Now Permits Qualified Out-of-State Medical Cannabis Patient Purchases (New Cannabis Ventures)

// Eaze Launches On-Demand Cannabis Delivery in Oregon (Business Wire)

// Medical marijuana regulations clear Oklahoma Senate panel (Marijuana Business Daily)

// High standards: Pentagon says there’s no policy against investing in companies that legally sell marijuana (Task and Purpose)


Check out our other projects:
Marijuana Today— Our flagship title, a weekly podcast examining the world of marijuana business and activism with some of the smartest people in the industry and movement.
Marijuana Media Connect— A service that connects industry insiders in the legal marijuana industry with journalists, bloggers, and writers in need of expert sources for their stories.

Love these headlines? Love our podcast? Support our work with a financial contribution and become a patron.

Photo: Weed Porn Daily/Flickr