Cannabis companies are starting to use a new set of funding regulations to revolutionize the way people invest. And as a result, virtually anyone can now get in on the ground floor of the green rush thanks to Med-X.
Last summer, the Securities and Exchange Commission (SEC) came up with a new set of regulations that makes it possible for startups to generate funding by using crowdfunding. The new rules are called SEC Regulation A+, or SEC Reg A+ for short. Here’s very generally how it works:
A startup company can run a Kickstarter- or Indiegogo- like campaign where they explain their offerings to the public and attempt to drum up interest from possible investors. But people interested in funding the company don’t actually invest money yet.
Instead, they basically add their name to a list of potential investors. The company is then able to use this list as concrete evidence of how many people are interested and how much people are willing to invest. Once the company has gathered all this information, it can then begin selling equity to investors using a licensed broker-dealer.
To put it simply, SEC Reg A+ could benefit small-time investors as well as smaller companies by giving everybody a more direct shot at getting into the game on the ground floor.
And a few innovative cannabis companies are now taking advantage of all this. In particular, Med-X, Inc. has started paving the way for revolutionary crowdfunding investment in the cannabis space.
Med-X is a California-based cannabis company. They focus on developing all sorts of the behind-the-scenes work that goes into actual marijuana cultivation.
They also run a publication to educate the public about the marijuana industry. They’ve invented an all-natural pesticide that’s been approved for use on legal marijuana crops. And they cultivate and test cannabis, looking for ways to maximize safety and potency.
And now, they’ve launched an SEC Reg A+ crowdfunding campaign. The company sees this as yet one more way to tap into the diversity and huge potential of the broad world of cannabis.
Investors of all sizes can now get in on the cannabis industry. And at the same time, Med-X will gain the funding it’s looking for to continue expanding its work to grow revenue.
“Crowdfunding makes it a lot easier for cannabis start-ups to access the capital needed to grow their business,” explained the CFN Media Group.
“But of equal importance, it allows everyday Americans to participate in the enormous potential upside within the cannabis industry.”
Cannabis investment has been a hot topic in 2016. Last year, the legal marijuana industry made more than $5 billion in revenue. And earlier this year, experts predicted it would continue to grow every year, climbing to more than $22 billion by 2020.
And because the industry is still in its early years, some experts have said it could be a great time to invest.
In fact, one expert called legal cannabis “one of the greatest investment opportunities of our time.” And thanks to SEC Reg A+ campaigns like Med-X’s, it’s easier than ever before to get in on the green rush of the cannabis industry.