Equity Crowdfunding in the Cannabis Industry: What is Reg A/Reg A+?

Here at Greenery Map, we’re excited about all the amazing wellness possibilities which legal cannabis has enabled in recent times. With more opportunities for research and innovation, we’re now seeing a renaissance of new cultivation techniques, new and exciting strains, groundbreaking products, and time-saving services (such as our App/Site) designed to make access to legal cannabis available for everyone in need. 

One of the great things about Greenery Map is that anyone can invest in our company! In our previous blog, we briefly touched on Reg A — let’s now take a closer look at this topic and what makes Reg A/A+ investments so popular. 

What is a Non-Accredited Investor?

First, it’s important to understand some basics. A non-accredited investor is someone who can only invest a maximum of 10% of their annual income or 10% of their net worth per offering, whichever is greater. 

What is an Individual Accredited Investor? 

Next, an individual accredited investor is someone that has a net worth in excess of $1,000,000, not including their primary residence; or historic and expected income of over $200,000 (or $300,000 for couples) in a calendar year.

What is an Accredited Investor as an Entity?

Thirdly, an accredited investor as an entity is any trust with total assets worth more than $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person; or any entity in which all of the equity owners are individual accredited investors.  

What is Regulation A (Reg A)?

If you’re new to the investment game, you might not be aware of Reg A. But not to worry, we’re here to help. According to Investor.gov

Under the federal securities laws, any offer or sale of a security must either be registered with the SEC or meet an exemption.  Regulation A is an exemption from the registration requirements, allowing companies to offer and sell their securities without having to register the offering with the SEC. 

Companies relying on a Regulation A exemption can offer and sell their securities to the public under two different tiers that have two different requirements—Tier 1 and Tier 2:

  • Under Tier 1, an issuer can raise up to $20 million in any 12-month period, including no more than $6 million on behalf of selling securityholders that are affiliates of the issuer.
  • Under Tier 2, an issuer can raise up to $50 million in any 12-month period, including no more than $15 million on behalf of selling securityholders that are affiliates of the issuer.

Is there a difference between Reg A & Reg A+?

Furthermore, if you’re doing your due diligence and researching viable investment opportunities, you might come across both Reg A and Reg A+ being mentioned throughout. Is there a difference? According to industry experts, these days there really is no difference between the two and the terms can therefore be used interchangeably. 

The Benefits of Regulation A for Investors

You might be asking, “What are the benefits of Reg A/A+ for investors?” Here are just some of the advantages of this exemption: 

  • Both accredited and non-accredited investors can invest.
  • Before Regulation A, it was hard for “Main Street” investors to invest in startups or any privately held business.
  • Because Reg A limits non-accredited investors to 10% of their income/net worth (in Tier 2), they are therefore able to minimize their risk. 
  • There are no restrictions for accredited investors. 
  • Reg A offerings securities are federally unrestricted and can be sold immediately after purchase.

Investing in the Greenery Map App & Site

Our team here at Greenery Map is excited for the future of our company, and about offering the public a unique investment opportunity in something that solves cannabis industry problems and subsequently helps people in need. 

Greenery Map is undertaking a Tier 2 offering for up to $10M USD. Unlike most companies involved in crowdfunding, Greenery Map is qualified by the U.S. Securities & Exchange Commission (SEC) — which means you can rest assured that your investment is protected. 

To invest in Greenery Map, or to access more information about what we do, please be sure to visit our Investor Page, here.
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