What’s New with Cocannco: February 2023
Summary of Updates
While it’s all doom and gloom in the news about the cannabis market, Cocannco is well positioned to grow, with the forecast predicting $72 billion in market growth by 2030.
There’s a new short-term opportunity to invest in Clearly California, a target investment of Cocannco.
Cocannco has finished the audit for the year ending 7/31/2022 and filed with the SEC, allowing us to work on our Reg A+ offering.
Cocannco has changed transfer agents to Securities Transfer Corporation, enabling shareholders to manage shares efficiently.
The logistics company Parsl is working on a joint venture with Cocannco to bring more accountability to the cannabis business.
Why is Cocannco so optimistic in the face of the cannabis downturn?
The SAFE Banking Act failed at the end of 2022, VC investments are down 95%, and caused most institutional capital to steer clear as well. There’s a lot of doom and gloom in the cannabis industry for 2023.
With this downturn in the market and predatory-like lending being all that’s left to cannabis businesses in search of capital, this opens up the opportunity for the public to take the place of private investors. (More on that in a bit.)
As said by Viridian Capital Advisers, “As painful as it is likely to be, we believe this period of belt-tightening and consolidation will result in a healthier industry better positioned to face the challenges of legalization when and if it arrives. In 2023, good equity analysis means solid credit analysis, as many companies will not survive the upcoming period.”
And the forecast remains the same: cannabis sales are projected to grow from $32 billion to $72 billion by 2030. New Frontier Data reports that in the US, cannabis sales are poised to surpass the $50 billion mark in 2025. The companies that survive these lows are the ones that will be positioned to succeed.
Cocannco is at a distinct advantage over big companies with huge overhead and significant debts. We are capable of acting and reacting to the market with more flexibility. And we are still vetting companies only to target investments in businesses well-positioned to succeed.
Short-term investment opportunity with Clearly California
Clearly California is a target investment of Cocannco which has been greatly successful. Over the last two weeks, Clearly California pre-sold flower, received the product, packaged it, and sent it out to the dispensaries. These sales are the most recent example of Clearly California’s growing reputation as a business model that works. The business is routinely selling out of all the products, and it is ready to scale.
By investing in Clearly California with a loan, you can earn a 25% annual return on investment over a short term (6 to 12 months).
It pays monthly interest-only payments during the term, with the principal balance due at the end of the term. Loan funds are used to increase specific targeted sales for Clearly California.
Interested in this investment opportunity? Learn more here.
What’s the significance of Reg A+?
Cocannco is eligible for the US Securities and Exchange Commission’s Regulation A+ exemption. That means Cocannco can sell shares to the general public, not just accredited millionaires, once qualified.
Regulation A+ was signed into law as part of the JOBS Act in 2012. This act allows entrepreneurs greater access to capital while empowering non-accredited investors with greater access to investing in high-growth companies.
The cannabis industry’s access to capital is throttled, and until now, the industry has been 100% funded by private wealth. Cocannco’s Reg A+ offering will open up a pipeline to get funding for well-vetted cannabis companies starving for capital. The general public can take the place of accredited investors to fund the cannabis industry.
What does the change in transfer agents mean?
Securities Transfer Corporation is a transfer agent that will make share management easier for shareholders.
STC will enable Cocannco shareholders to have the following:
Coming Soon: 24/7 online access to their data with robust and live reporting systems
Proxy services, including online voting and virtual annual meeting support
Paying agent services, including ACH delivery capability
Shareholder mailings and communications
Increased support staffing and hours
Enhanced connectivity with OTC markets
What’s happening with Cocannco & Parsl?
Parsl is an app providing a solution to cannabis inventory management, product authentication, direct consumer marketing, and compliance reporting. When Cocannco CEO Don Clark met the President of Parsl and learned what it could do, he saw its value not only to Clearly California (a target investment of Cocannco) but also to Cocannco itself.
This technology is more than just an inventory tracking system you can use from your phone. It integrates with state compliance software like Metrc, making compliance reporting easy. It reduces the need for manual inventory audits and creates more reliable data for financials. And with Parsl’s ability to track cannabis from seed to sale, they collect targeted data to help cannabis businesses market more effectively.
As Parsl shapes its software to bring more value to the cannabis industry, Cocannco plans to mandate the use of Parsl as part of deals.
Now is still a great time to invest
Cocannco uses sound financial due diligence to identify and partner with these companies and crowdfunding to provide the cash infusion they need to grow.
Ready to learn more about these investment opportunities with Cocannco?