Friday, December 9, 2022
HomeTechnologyGCC invests whopping $700,000 in Latin companies by selling equity via crypto

GCC invests whopping $700,000 in Latin companies by selling equity via crypto

Global Cannabis Capital, an investment firm which invests in Latin American cannabis companies, intends to raise funds by selling equity via Ethereum blockchain tokens.

During a presale last month, more than 100 investors committed to purchasing some of those tokens, valuing the company at $25 million.

GCC has invested $700,000 in 28 Latin American cannabis companies by providing services in exchange for equity or purchasing stakes in promising firms.

As cannabis users around the world light up to celebrate 420, a different campaign using crypto tokens to assist future investment in the industry is gaining traction.

According to Bloomberg on April 18, the GCC intends to raise more capital through crypto tokens rather than traditional share offerings.

According to reports, the company is about to sell tokens on the Ethereum blockchain. In contrast to most cryptocurrencies, the tokens in these offerings are backed by the issuer’s assets or equity.

This token offering could set a new precedent for other cannabis companies, particularly those based in countries where banks are prohibited from supporting marijuana-related businesses (MRBs).

The tokens are also intended to allow investors to diversify their portfolios by investing in a growing number of start-ups.

The CEO and Co-founder of Global Cannabis Capital Andres Israel stated that:

“With our token investors can now own equity participation of a growing number of startups, and propel the growth of the cannabis industry (since 100% of the proceeds are used for investing in more cannabis companies which will generate an increase in the portfolio valuation)”.

GCC intends to issue capital stock in the form of 100,000 tokens with the offering, through which the fund will likely sell up to 6% of its equity over the next three years.

Read more:

Bakkt to allow American bank customers to buy & sell Bitcoin and Ether

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

19 + 17 =

- Advertisment -

Most Popular