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Another strategy is to participate, where possible, in Private Placements. CANNAINVESTOR Magazine was among the first to cover an upcoming Private Placement with an exemption from the Accredited Investment requirement. The company is True Leaf Medicine (CSE:MJ) and they are now accepting orders to participate (note: not all provinces qualify but if you live in a jurisdiction that is not included then MJ’s Regulation A+ offering is still open to anyone – even “fans” per their News Release). Hopefully, more companies operating in the legal cannabis and hemp industry will apply for the new offering memorandum (OM) exemption that will allow more retail investors the ability to invest in capital-raising opportunities. I have written many times about the potential in the animal care sector and this recent article illustrates that. With companies such as True Leaf Medicine and Naturally Splendid Enterprises Ltd (TSXV:NSP; OTC:NSPDF) having a significant presence already, they just may be among those with that much coveted first mover advantage. That article lists other companies in the sector (USA exchanges) that it expects to also be frontrunners in the pet health market with “virtually limitless opportunities”. Yet another strategy could be to consider those companies with patent pending promising technologies and processes such as exists with InMed Pharmaceuticals, Inc (CSE:IN; OTC:IMLFF). What about Investing in companies transitioning from an unrelated industry to this industry? One example is Vinergy Resources Ltd (CSE:VIN; OTC:VNNYF) and VIN appears to be adapting well.
Upcoming listings include MedReleaf (expected week of May 22), and The Green Organic Dutchman (TGOD) - there are others. Investing in the equity of companies before they go public is often said to be where the real money is. Funds such as The Green Acre Capital fund offer a diversified and professionally managed means to invest in such opportunities. How to locate such opportunities? Many I know contact companies directly or request an Investment Advisor to do so. For those of you in the USA, such an opportunity exists now with HelloMD but unfortunately it is not open directly to Canadian investors. Always review any Information Circulars, Financing structures, and if possible any available financial statements for dilution and other information that may affect decisions as a shareholder. There are crowdsourcing options in Canada. GoTroo was scheduled to crowdfund for Canapur however Canapur cancelled. There is also Bay Street Cannabis – also without any current campaigns. Bay Street Cannabis recently raised over $1.1M for Vertis Pharma Inc (CSE:VRT; OTC:VRTHF).