What’s New with Cocannco

The Market: Right now is the best time to invest in cannabis. 

The cannabis sector is a proven multibillion-dollar industry taking shape right in front of us. It’s now medically legal in 41 states and decriminalized for adult use in 23 states. It’s only a matter of time before cannabis is federally legal.

Here’s why: 

• US legal cannabis sales are projected to grow from $32 billion (2022) to $72 billion by 2030.

• The industry is primarily small companies and brands ripe for expansion or acquisition.

• Federal policies are still holding big banks and major investors back from taking over the sector. 

• The market is developing state by state, creating opportunities for strategically positioned companies to expand nationally when federal legalization hits

• Government revenues from cannabis are at record highs meaning they’re now incentivized to help the legal market outperform the illegal market.

Even without the inevitability of federal legalization, it’s a prime time to invest in cannabis.

Why Cocannco

1. 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. 
   

2. Cocannco is 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.
   

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

4. Investing in private cannabis companies often means you can’t access any return on investment until the company sells or goes public. Cocannco is planning to list publicly in 2023. Once public, this will establish an exit path for Cocannco shareholders. 

2 of Cocannco’s Most Exciting Acquisition Targets

1. Clearly California is a small but already profitable cannabis startup brand founded in 2020, looking to expand statewide, then nationally. They currently sell five products regionally and have plans to expand and reach $5.5M in sales by 2024. 
   
   Based in Central California, the company is dedicated to making top-shelf products at working-class prices through licensed cannabis manufacturers. With expanded product lines and manufacturing agreements in multiple states Clearly California is positioned to become a nationally recognized brand. 
   

2. Infinity Group, cultivation and dispensary operators with over 20 years experience in Northern California, have qualified to open a new Cookies dispensary/cultivation hybrid facility in the Bay Area. Their facility is licensed for a retail store and to grow up to 10,000 sq ft of cannabis canopy.   Projected annual gross revenue of $11 million by 2025 for the retail store only.   Cultivation expansion is contingent upon market conditions.
   
   Infinity’s team is one of California's most experienced and successful groups. In the past five years, they’ve obtained over 30 licenses in California and Nevada and have sold over $200 million in regulated cannabis since 2003. 

The Cocannco Plan

The short-term plans are to raise capital through a Regulation D Offering to Accredited Investors for a maximum of $3M.

This offering is designed to fund the expansion of Clearly California Products Inc., cover operating expenses, and finance the qualification and launch of a Regulation A+ Digital Crowdfunding Campaign, raising up to an additional $75M.

The Reg A+ is also another step towards Cocannco becoming a public company.

Alongside the Reg D offering, Cocannco aims to complete a larger roll-up and expansion of assets of The Infinity Group. We'll do this by working with partners to solicit large/institutional investor equity in concert with select lenders and/or through the Regulation A+ Crowdfunding Campaign.

Reg D Investors are paying a per share price of $1.50 (with a warrant for a like amount of shares at the same price for 12 months), while the Reg A+ shares offered to the public are targeted to be $2.00.

Here's a breakdown of the abovementioned investment strategy: Cocannco Investment Strategy.