Tikun Olam Announces Closing Of $7 Million Convertible Promissory Notes Financing

NEW YORK: Tikun Olam USA, the world pioneer in cannabis research, is pleased to announce the closing of a $7,000,000 offering of 6% convertible promissory notes (the “Notes”), maturing in March 2019.

Proceeds from the Notes, issued by T.O. Global LLC, a New York limited liability company (the “Company”), will be used for product research and development, enhancing and protecting intellectual property, patient studies and trials, advertising and marketing of the Company’s brand, payment of corporate, organizational and transactional expenses, repayment of indebtedness to a related party, and working capital and general corporate purposes.

This financing highlights recent major licensing deals for the Company that will bring its exclusive, branded, science-backed cannabis products to more than ten U.S. states, from coast to coast in 2018.

About Tikun Olam

Tikun Olam (“repair the world” in Hebrew) is a leading cannabis brand and globally recognized as the pioneer of modern medical cannabis.  The company’s global mission is to research, develop and provide efficacious, data-based cannabis treatments to help sufferers. Operating as a commercial venture for over ten years, Tikun Olam’s products have been used since 2010 in ongoing clinical trials in Israel’s regulated medical cannabis market, treating over 10,000 patients for a variety of symptoms of medical conditions such as Cancer, PTSD, AIDS, epilepsy, Crohn’s Disease/Colitis, multiple sclerosis, cerebral palsy, chronic pain and neuropathy.

Tilray Announces Completion Of Series A Funding Round Led by Global Institutional Investors

C$60 million Series A financing will enable Tilray to increase production capacity and expand distribution in North America and Europe

CANADA:  Tilray has announced the completion of its Series A funding round totaling C$60 million. The round was comprised of a group of leading global institutional investors.

According to a company press release, Tilray will use the new funding to increase its existing production capacity in North America, to continue to build its European Union campus in Portugal, and to expand availability of its products to more patients and pharmacies around the globe. The terms of the Series A funding round, including Tilray’s valuation, were not disclosed.

Tilray, federally licensed in Canada and Europe, currently sells pharmaceutical-grade, GMP-certified medical cannabis products to tens of thousands of patients in eight countries. The company supplies hospitals, pharmacies and pharmaceutical distributors on four continents, and has signed supply agreements with NOWEDA, one of Germany’s largest pharmaceutical wholesalers, and Shoppers Drug Mart, Canada’s largest pharmacy chain.

Since its founding in 2014, Tilray has been wholly-owned and solely funded by Privateer Holdings, the world’s leading private equity firm investing exclusively in legal cannabis. Tilray’s Series A funding round marks the first time that outside investors have invested directly into a Privateer Holdings portfolio company. With its Series A funding and incorporation, Tilray is positioned to operate and finance its growth independent of Privateer Holdings.

Bipartisan Marijuana Banking Bill Introduced In The Senate

DISTRICT OF COLUMBIA: Reflecting growing public support for changing the nation’s drug laws, a bipartisan group of senators on Thursday introduced the chamber’s first bill that would legalize banking for recreational marijuana companies.

Introduced by the Senate delegations from Oregon and Colorado, two of the first states to legalize recreational marijuana, the bill would prohibit the federal government from penalizing banks that work with marijuana businesses.

Though four states and the District of Columbia have legalized marijuana, the drug is still illegal under federal law. That makes it difficult for businesses operating in those legalized states to access financial services through the banking industry. Instead, those companies have to run all-cash operations that the senators say invites crime.

Colorado House Backs Down, OKs Hemp-Farmers’ Access To Financial Co-Op System

COLORADO: Backing down from a five-hour fight over whether industrial hemp farmers should be able to access a new credit union-like arrangement for marijuana businesses, the state House narrowly passed a bill that would create the first cooperative of its kind.

Acquiescing to Senate insistence that hemp farmers be allowed to join the cooperatives, representatives voted 33-31 for House Bill 1398, sending it to Gov. John Hickenlooper‘s desk for approval and, ultimately, a showdown with federal banking regulators.

The cooperative setup requires approval by the U.S. Federal Reserve, which regulates the nation’s banking system.

The vote was the ultimate compromise for legislators who wanted to keep the cooperatives limited to marijuana businesses.

Banking Marijuana Requires “Act Of Congress”

DISTRICT OF COLUMBIA:  Despite bankers’ varied attitudes about legalizing marijuana, now that it is legal in Colorado, banks are supportive of government efforts to permit financial services for marijuana businesses. However, numerous obstacles prevent banks from serving marijuana businesses and their customers as they conduct legal activities.

Colorado can’t regulate or tax an industry for which it cannot track money. Public safety risks associated with cash-heavy businesses cause concern. And several federal laws preclude banks from serving these businesses, regardless of state law. Only Congress can resolve this. [Read more…]

Banking Marijuana Requires “Act Of Congress”

DISTRICT OF COLUMBIA:  Despite bankers’ varied attitudes about legalizing marijuana, now that it is legal in Colorado, banks are supportive of government efforts to permit financial services for marijuana businesses. However, numerous obstacles prevent banks from serving marijuana businesses and their customers as they conduct legal activities.

Colorado can’t regulate or tax an industry for which it cannot track money. Public safety risks associated with cash-heavy businesses cause concern. And several federal laws preclude banks from serving these businesses, regardless of state law. Only Congress can resolve this. [Read more…]

Joint Venture: Medical Marijuana Entrepreneurs Seek Out Unusual Backers

MASSACHUSETTS: Shut out of traditional bank loans, budding entrepreneurs who want to sell medical marijuana in Massachusetts have been forced to get seed money from a host of unconventional sources — from restaurant and nightclub owners to friends and family, landscapers and even former legislators. [Read more…]

Joint Venture: Medical Marijuana Entrepreneurs Seek Out Unusual Backers

MASSACHUSETTS: Shut out of traditional bank loans, budding entrepreneurs who want to sell medical marijuana in Massachusetts have been forced to get seed money from a host of unconventional sources — from restaurant and nightclub owners to friends and family, landscapers and even former legislators. [Read more…]

Inslee, Ferguson Tell Congress To Fix Banking Rules So Legal Marijuana Can Work

WASHINGTON: Governor Jay Inslee and Washington Attorney General Bob Ferguson want Congress to fix the banking rules or (at least) give banks confidence that they can take money from state-licensed marijuana businesses without fear of federal prosecution. [Read more…]