To read more on Crowdfunding,
Check out last month's article titled "Crowdfunding in the MJ Sector"
January 2018 CI Mag
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TGOD was one of the most anticipated IPO’s that went public earlier this year. Here are some follow-up questions pertaining to them that may be in part responsible for shifting potential investors mindsets when it comes to investing in the privately held cannabis space. If you are looking to read more on the TGOD IPO please refer to our prior article covered here.
Per MedMen’s press release on May 29th, 2018:
“The listing follows the successful completion of a reverse takeover of a Canadian public company by U.S.-based MM Enterprises USA, LLC. In connection with this reverse takeover and the listing on the CSE, the Company raised approximately CA$ 143 million, or US$ 110 million, through a private placement at an implied enterprise valuation of CA$ 2.14 billion, or US$ 1.65 billion. Executives of MM Enterprises USA, LLC were appointed as officers of the public company and the public company was renamed MedMen Enterprises Inc.”
This process of an RTO seemed to have worked in their favor as they were able to speed up the process of being publicly listed without the hassles of an IPO. In addition, they were able to raise some additional needed capital which is normally an issue with an RTO. For more details on the MedMen RTO click here.
Let’s take a look at some of the pros and cons of an RTO now.
Pros:
Time and money - While there is no written timetable in stone it is generally given that the paperwork and process required to undertake an RTO is substantially less than what is involved in an IPO. An RTO can occupy a few weeks to a few months of time, whereas an IPO could potentially be as long as a year before all the
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