Regulation D Offering Announced for Accredited Cannabis Investors

Written By: Jen Neville
November 5, 2018

Cannabis IPO Financing

GreenLine BDC, Inc., has positioned itself to be the pre-eminent source of expertise, capital and market support for small-cap U.S. cannabis companies that are committed to an IPO within 6-12 months in order to raise the funds needed to finance organic growth and/or strategic acquisitions and is commencing a general solicitation Regulation D Offering to accredited investors.

GreenLine BDC, Inc. President and CEO, Ted Herman, stated, "GreenLine BDC is creating access for accredited investors to private equity investing in small-cap, pre-IPO, U.S. cannabis companies."

Mr. Herman continued, "Our strategy is to invest into private cannabis companies, facilitate their IPO process and exit portfolio positions that have experienced a material up-lift in price due to a 'private to public company valuation arbitrage.' As a regulated BDC, we intend to distribute 90% of taxable income to our shareholders."

This Offering will be in the form of a Simple Agreement for Future Equity (SAFE Note or SAFEs) with a 50% discount and no valuation cap. A SAFE is an instrument containing a future right to shares of Capital Stock, purchased by investors for the purpose of funding the Company's business operations.

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The SAFEs will be unregistered, as is required for a Regulation D offering involving general solicitation pursuant to Rule 506(c) under the Securities Act of 1933, as amended (the "Securities Act" and can only be purchased by persons who qualify as "accredited investors" under Regulation .

The minimum subscription amount for the SAFE Note Offering will be $25,000, subject to Company discretion to accept a lesser amount. There is no minimum aggregate amount for this Offering. The maximum aggregate amount of this Offering is $500,000.

However, the Company reserves the right to sell more or less SAFEs in the Offering or otherwise. In addition, the Company reserves the right to cancel or modify this Offering at any time, to reject subscriptions in whole or in part (due to questions about accredited investor status or otherwise), and/or to waive conditions to the purchase of the SAFEs.

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