CANNAINVESTOR Magazine November / December 2016 - Page 28


How A Cannabis Company Can Go Public Including A Start-Up

Here is an interesting yet little known fact; ANY company can go public. Yes, even a Cannabis company or a start-up company. What are the advantages of taking your company public? There are many, but the most obvious benefit is that typically capital raised from the sale of stock can be directly invested into your company for growth and expansion.

Unlike bank loans, money raised from going public does not need to be paid back. Meanwhile a venture capitalist will demand a significant ownership percentage in exchange for capital. Going public not only typically increases your company valuation but also allows you to retain a higher degree of ownership and control.

New states, including California with over 40 million people, have legalized the recreational use of marijuana, The cannabis industry is a very hot business sector right now. There are more and more states in the U.S. legalizing Cannabis and/or Hemp for a variety of uses, and providing entrepreneurial opportunities. So if you're still reading this then you're clearly interested in what it takes to go public and how it can work for your company.