Frequently Asked Questions

Cocannco is a fundraising and investment company. We help successful cannabis companies with proven leadership, financials, and plans grow to the next level.

Every company looking to scale and stay competitive in the rapidly maturing, multi-billion dollar US cannabis market has to raise money to grow.

We raise money through crowdfunding platforms with Reg A+ and Reg D public offerings to invest in successful and exciting cannabis companies ready to level up. We raise millions of dollars for them, and in exchange, we get partial or complete ownership of their companies.

The cannabis industry has seen tremendous growth over the past decade but continues to struggle with obtaining the money needed to scale companies. We positioned Cocannco as the solution to this problem.

Using sound financial due diligence, we identify companies that are the best of the best in the cannabis market and partner with them on their fundraising needs. Then using our crowdfunding platforms, we provide the cash infusion needed for them to grow.

Unlike most private equity firms, we raise these funds without any intention of taking over the company operations or squeezing them dry for our gain. We want to support successful teams and ultimately serve as their ongoing fundraising partners as they grow through expansion or acquisition.

As a fundraising company that prioritizes crowdfunding and a wide investor base, we also can continually return to our investors for more funds as companies scale. At the same time, we want to connect the general public to the best companies that they wouldn’t otherwise have investment access to.

Cocannco has also positioned itself to go public. Once listed on a public securities exchange, our investors will have an exit pathway.

Cocannco’s leadership team has both debt and equity fund management experience and is dedicated to accelerating the operational success of its portfolio companies.

CEO Don Clark has over 45 years of experience in compliance, mortgage banking, and business development. He has managed over $350 million in annual lending volume using over $10 million in warehouse funding lines. Don has been consulting cannabis operations for 5 years and is currently CEO of Clearly California Products.

Advisory Board Member Patrick Morris is an international corporate lawyer and experienced fund manager who has managed both public and private equity holdings. He has previously directed multiple $400 million portfolios and has raised $550 million of private equity.

CMO Evan Clark is a social entrepreneur and business strategy consultant with over 12 years of experience leading and fundraising for for-profit and nonprofit organizations. He’s overseen national PR and marketing campaigns and advised dozens of federal and state-level political campaigns.

The simple answer is access and risk mitigation.

The number one challenge most investors have when entering the cannabis industry is finding who to invest in. Access to the best operators is becoming more and more limited as the industry matures, and company vetting is uniquely challenging without experience and knowledge of each state’s distinct regulations.

Cocannco has gained access to some of the largest and most successful cannabis operators in America and developed an industry-leading due diligence process to analyze risk. If a company is “Cocannco approved,” you can feel confident that they’re one of the top investment prospects around.

Cocannco is also structurally designed to mitigate risk through its plans to build an expansive and diverse investment portfolio. If any one company fails to meet expectations, your investment is protected by the broader portfolio.

Finally, Cocannco is planning to go public. Investing in private cannabis companies often means you can’t access any return on investment until that company sells or goes public. Once public and all share restrictions are met, Cocannco stockholders will be able to sell their stock at any time.

The cannabis industry in the United States is going through its most important maturity phase yet.

Ten years ago, when the first states began to legalize, these state governments were scrambling to write regulations. The market was like the “wild west.” But now, with stricter compliance guidelines and increased competition, we’re starting to see real differentiation between mature companies positioned for national expansion and those still struggling to survive. This is good for investors trying to make safer and smarter investments.

National legalization is coming.

When cannabis is legalized, the companies that will make money are those in the top 1% of the market – the ones that are ready to compete with or be purchased by top investors and giant corporations. We only invest in companies we believe can be in that top 1%.

Most major US banks and investors – the biggest financial players – still find the US cannabis market too risky or too small to invest in. Federal banks can’t even consider it until federal legalization.

Major US companies could easily transition into the cannabis market and become a market leader overnight, but they, too, are waiting until federal legalization lowers their costs and risks. These investments are not worth it for them… yet.

However, with national cannabis legalization finally being discussed in Congress, it’s only a matter of time before these companies and investors flood the market. When that happens, they will do everything in their power to push out the poorly run competition and buy out the well-run competition. We aim to be that well-run competition.

Cocannco is Pre-IPO.

Investors are still getting in at the ground level before we list on a public platform and join the larger cannabis investment world.

Through our Reg A+ crowdfunding:

$500

Through our Reg D 506(b), accredited investor crowdfunding (plus up to 35 non-accredited investors):

$3,000

Through our accredited major investor program:

$100,000

The Securities and Exchange Commission (SEC) defines an accredited investor as someone who meets one of the following three requirements:

1. Income: Has an income of at least $200,000, or $300,000 if combined with a spouse’s income. This level of income should be sustained from year to year.

2. Professional: Is a “knowledgeable employee” of certain investment funds or holds a valid Series 7, 65, or 82 license.

3. Net Worth: Has a net worth of $1 million or more, either individually or together with a spouse, but excluding the value of a primary residence.

By selling your shares privately

You have the legal right to sell your shares in Cocannco at any time through a private transaction. But unlike publicly traded shares, the market can’t define the share price, and you’ll have to negotiate the price privately with your buyer.

By selling your shares on a public stock exchange (coming soon)

Cocannco is planning to go public and list its shares on a public stock exchange platform like OTC markets. When that happens and all share restrictions are met, your shares will become “liquid,” and you’ll then be able to sell them at any time.

It is uniquely difficult for the cannabis industry to raise funds from traditional investors. Federally accredited banks, federal employees, and federal contractors are all currently prohibited from investing, and the stigma of the industry still persists. On top of that, companies can’t legally list their companies on most American stock exchanges, making it difficult for them to raise funds through public offerings.

Using Reg A+ crowdfunding, Cocannco can legally raise millions of dollars for its investment portfolio annually. On top of that, our offerings can be made accessible to everyone — not just accredited investors. We believe the general public deserves the opportunity to invest in one of the fastest-growing markets in America today.

Research also shows that while most investment capital has declined during this unstable market, Reg A+ crowdfunding offerings are continuing to grow. We believe this is the future of corporate fundraising.

The cannabis industry isn’t like the rest of the stock market. It’s still an emerging industry that has experienced explosive growth over the past decade without access to traditional capital or stock exchanges. The future of this market has untold growth potential, and savvy investors will be rewarded for this early involvement.

Unlike most investment companies, Cocannco will raise its capital through crowdfunding.

Using our Reg A+ crowdfunding strategy, we can prioritize people like you, who are often passionate cannabis consumers and hungry to get in on the ground floor of this rapidly maturing market.

Using targeted marketing campaigns, Cocanno will recruit thousands of crowdfunding investors.

Yes!

Cannabis investing in America is completely legal.

On top of that, Cocannco is a fundraising and investment company that is not “plant-touching.” All companies in Cocannco’s portfolio will be subsidiaries, creating an extra layer of protection for investors.

Restrictions may apply to federal employees and contractors.

Unlike most investment companies, Cocannco will raise its capital through crowdfunding.

Using our Reg A+ crowdfunding strategy, we can prioritize people like you, who are often passionate cannabis consumers and hungry to get in on the ground floor of this rapidly maturing market.

Using targeted marketing campaigns, Cocanno will recruit thousands of crowdfunding investors.

Until cannabis is federally legalized, cannabis is regulated on a state-by-state basis in the United States. This means each state that legalizes cannabis production and consumption creates its own market. Some markets are smaller because of their small population, while other markets – like California’s – are larger than even Canada’s market. While federal legalization will help companies like Cocannco grow their market share and potential investment pool, we’re positioned to stay profitable in multiple state markets regardless of the federal legalization timeline.

While federally chartered institutions would be in danger of losing their license for allowing cannabis banking, limited checking and savings banking has become available through select state-chartered banks and credit unions. These banks and credit unions must follow strict due diligence laid out in FinCEN guidance to provide deposit or lending services to a cannabis business.