Q
CannaInvestor Magazine: How did you arrive at your current valuation of $76M?
A
Cannalogue: The valuation is completely derived from the financial forecasting. A blended valuation from a DCF (80% weighted) and comparables (weighted 20%) yielded $145M. However, we wanted to provide a marketability discount leading to a $76M valuation.
Q
CannaInvestor Magazine: Your capital raise goal is $15M, what are the uses of proceeds?
A
Cannalogue: The main use of proceeds will be for marketing and key personnel. Regarding marketing, we’re constantly told that we’re doing all of the right things, but need to get the word out there. We’ll be using the funds for traditional marketing (TV, radio, PR, billboards, magazines) as well digital marketing (social media ads, native ads, programmatic ads, connected TV) where this will be the main use of funds. More key personnel will be necessary including software engineers, testers, data scientists, client care, sales, and more. Professional fees such legal, accounting, and insurance will be ongoing costs in addition to technology infrastructure and cybersecurity requirements.