Hello everyone! Just a quick update to fill you in on some exciting developments on the CannCo front! Our team has been extremely busy in the first quarter of this year, making big strides and reaching exciting milestones in the tech development, operations, marketing and investment arenas.
On the investment front, we recently surpassed the $535,000 mark, which was the second milestone we had set for the Company during this RegCF campaign. This means that everyone who has invested will be receiving an additional token bonus! As of the time of this writing, we’ve reached $572k in total investment, which has been contributed by almost 700 of you (698, to be exact!), for which we’re grateful and humbled beyond words.
We’re also excited to announce that we’re in the process of launching our Series A investment round, which will be structured as an SEC Regulation D, 506(c) offering, targeting $5M-$10M in investment, at a slightly increased valuation to the current raise. .
On the product front, we’ve made a number of exciting developments, as well. Initial sections of the B2B merchant marketplace prototype were completed last month and are currently being shown to CannCo’s beta test partners for feedback. CannCo is also in the process of integrating with PrimeTrust, the FDIC-insured trust bank that will custody USD assets for CannCo’s ecosystem stablecoin. We hope to onboard our initial beta partner clients into the CannCo-PrimeTrust token service in the coming weeks and will update you all again as soon as we do!
To test this payment infrastructure, CannCo has been actively engaging a select group of beta test partners, who represent some of the most innovative and influential businesses in the cannabis community. To date, CannCo has received beta requests from over 50 companies and has approved six applicants so far, consisting of two cannabis brands, one distributor, one cultivator and two extraction lab. We expect to approve 14-19 more participants in the coming weeks and will announce all of the beta partners once the selection process is complete.
IN THE COMMUNITY
On the social front, CannCo recently attended the 31st Annual Roth Investment Banking Conference, in Laguna Beach, CA. This year marked the first time Roth added a “cannabis day” to their annual conference, during which an exclusive group of cannabis industry leaders presented their companies to the 4000+ investment funds and family offices in attendance. CannCo was honored to be included in this initial group of cannabis companies invited to attend a Roth Conference.
Also during the first quarter of 2019, CannCo also identified two pieces of pending California legislation to become actively involved in supporting. The first bill, SB34, was introduced by CA Senator Wiener, and aims to ensure free access to medical cannabis for at risk patients. CannCo is supporting SB34 by engaging it’s social community and the communities of CannCo’s strategic partners, totaling over 1 million cannabis supporters, asking them to contact their local senators or assembly members, and encourage them to support the measure. More recently, CannCo reached out to the offices of Phil Ting and Kevin McCarty, in an effort to support AB953, a bill recently introduced by the two Assemblymembers. AB953 would allow legally operating cannabis businesses to pay their state and local taxes using cash-backed “stablecoin” cryptoassets. As proposed, AB953 would require any business seeking to pay taxes with cryptoassets, to use only specific USD-backed stablecoins, with underlying assets banked at an FDIC-insured banking institution. CannCo’s ecosystem stablecoin, the CannCoin, will meet this definition exactly, as every single CannCoin in circulation will be backed by $1 USD on deposit in a custodial trust account at PrimeTrust, a federally insured financial institution. To further assist the State in their efforts to be able to accept tax payments in cryptocurrency, CannCo would require that all payments to State and local authorities be executed through CannCo’s account management portal, which will be GDPR and FinCEN compliant and will require that all users be biometrically verified before every payment. This level of identity management will help ensure that the State is properly attributing tax payments. We are working diligently to become more involved with AB953 and ultimately the State's tax collection and revenue reconciliation processes and look forward to updating everyone on that front soon!
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