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Security Type
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Crowd Note
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Min Investment
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$100
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Offering Date
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April 19, 2021
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Expected Close Date
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October 11, 2021
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Target Raise
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$50.00K-$396.07K
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Deal Notes
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Price Per Share: $1.00
Company Description
Green Valley Affiliates Inc. has developed a suite of CBD e-commerce products designed to connect all stakeholders in the CBD industry. The company previously raised on the MicroVentures platform using the Cannabiscope branding and, while still operating the eponymous Cannabiscope wheel, has expanded its product suite to include products that leverage the Cannabiscope technology, with newer product offerings including a consumer marketplace for brand discovery, a platform for CBD brands to find new potential customers, and a software income engine for affiliates to launch CBD brands to better connect with their followers.
Key Deal Facts
Raised ~$138,000 in a MicroVentures equity crowdfunding raise in Q4 2019
Offers 25+ CBD brands and 220+ products on its consumer marketplacei
Entered into a non-binding, letter of intent (LOI) with Athletes for Care to expand the company’s potential go-to-market partners
Received $50,000 in equity investment from Grove Capital in January 2021
Use of Proceeds
- General Working Capital: The company plans to allocate proceeds towards the general working capital needs of the business.
- Affiliate Success: Cannabiscope intends to invest in an affiliate success program to help the company reach more individuals who are looking to start and scale a CBD e-commerce business. This includes sales collateral, Green Valley University educational content, and much more.
- General Marketing: General marketing funds will be used to market Cannabiscope products in the hopes of attracting additional customers.
- Research & Development: The company intends to use a percentage of funds toward research and development of future product features and new lines of business.
- Intermediary Fees: The company has earmarked a portion of funds from this raise toward intermediary fees from the campaign.
Management Team / Advisory Board Bios
David Schacter, Co-founder & CEO
Dave’s education in business combined with his interest in cannabis led to the creation of Cannabiscope as a tool to help patients discover the potential of the cannabis plant. Dave has over five years of experience working in the cannabis tech space starting with research in Israel. Dave graduated with a B.S. in International Business from the University of Nevada at Reno and a M.S. in management from NYU Poly.
Paul Shockley, COO
As a serial entrepreneur, Paul has over ten years of startup experience from six different companies. Prior to Cannabiscope, Paul co-founded and served as the Chief Innovation Officer at the Guru Experience, a VC-backed startup that provided museums, zoos, and aquariums with a SaaS platform to make the experience better for visitors. Previously, Paul also co-founded Anacom Media and Inside Panama Real Estate and held various roles at several other startups. Paul graduated with a B.A. from the University of Southern California.
Valuation Notes
Conversion Provisions: In connection with an equity financing of at least $1 million, the Company has the option to convert the Crowd Note into non-voting preferred shares (Conversion Shares) at a price based on the lower of (A) the price per share paid for Preferred Shares by investors in the Qualified Equity Financing or (B) the price per share based on a $4 million valuation cap. Please refer to the Crowd Note for a complete description of the terms of the Crowd Note, including the conversion provisions.
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The overall viability and scalability of the business concept as well as the ability to drive the concept to profitability over time.
Business Idea
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The progress made thus far in demonstrating that the business has viability, a customer base or other business traction.
Business Traction
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The experience of the management team in running, scaling and/or exiting a business that required similar skills to execute the business plan.
Management Team
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The value of the company compared to similar companies raising money from investors.
Valuation
Security Description
A Crowd Note modifies the typical convertible note so that the crowd does not automatically convert to equity shareholders on the next financing and remain off the issuer’s capitalization table, but the crowd will still participate in any exit as if they had converted to equity. If there is no future financing, the holders of the Crowd Note still have upside, but could miss out significantly.
