CANNAINVESTOR Magazine Privately Held Companies January 2018 | Page 171

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Public: There is always the possibility that the company you have invested decides to go from being a private company to a publicly traded one. This would allow you to trade or invest in your company much like you would for other well known established companies on the market, such as Canopy or MedReleaf Corp. for example. Typically when this happens, at least in the current market conditions for such companies you can expect the value of your shares to go up nicely compared to what you initially got in for.

Bought: The company that you have invested in could end up getting acquired by another company. Chances are then you could end up being paid in cash or possibly in shares of the purchasing company. Typically when this happens you can expect to receive a fair amount more than you had initially bought in at.

Secondary Market: This option may not seem as obvious or as lucrative, but there is a possibility that you could sell the portion of the company you have acquired through CF to another potential investor that may have missed the initial opportunity to get in. You could essentially think of this process as a transfer from one investor to another. The liquidity or availability of this option is very thin in comparison to buying or selling a publicly traded company, however this is still a potential option and way you could gain from CF.

Conclusion:

Crowdfunding is an alternative means to investing versus what public companies typically offer, or even verse other alternatives such as angel investing for private companies. CF can fit into the marijuana industry as it allows companies to attract more potential investors as the barriers to investing are much less such as lowered cost or a minimum investment amount is required. As an investor CF presents a great potential of opportunity for us to further diversify our portfolios allowing us to take smaller stakes in more companies. Ask yourself if this is right for you. If you answer yes, we wish you the best of luck with your further due diligence and ultimately a successful marijuana portfolio.