US hemp oil products company Medical Marijuana is targeting a $5 million raise to expand into Latin America and conduct clinical studies and research on its cannabidiol (CBD) product line.
According to filings with the Securities and Exchange Commission, the company has already received nearly $500,000 toward its funding goal from a pool of 13 investors. The minimum investment for the raise is $10,000.
Industrial hemp-focused private equity firm General Hemp has long been a cornerstone investor, said Medical Marijuana chief executive Stuart Titus, while other investors include individuals and equity firms focused on investment in the hemp and legal cannabis sectors.
Titus told Agri Investor the Over The Counter-traded company has raised around $15 million in equity funding from previous raises.
Medical Marijuana produces a variety of high concentration CBD therapeutic hemp oil products with low or zero THC content, which are legal for sale in the US. The company recently received approval to sell 12 of its products in Brazil, Mexico and Puerto Rico. The company plans to build a physical presence in Brazil and possibly Mexico in order to build sales in those markets, according to Titus.
“We will be looking to partner with local firms. We would love to be able to have distribution focused in Brazil or Mexico, where we would be able to do bulk imports,” he said.
In addition to its line of hemp oil products, Medical Marijuana has interests ranging from around 15 percent to 45 percent in a total of ten portfolio companies operating in the medical marijuana sector, said Titus.
He expects positive November votes on marijuana legalisation in Nevada and California to drive up investment in CBD and other cannabis and hemp-related products, due to increased visibility and a decrease in negative perceptions toward products containing THC.
As previously reported by Agri Investor, the US cannabis industry grew by 90 percent in 2015 and is expected to grow to $6.6 billion in 2016, according to research from New Frontier and ArcView Market Research. Use of marijuana for medical use is legal in 23 US states and the District of Columbia, as well as Canada. Last week, Australia became the most recent country to pass legislation paving the way for development of a medical marijuana market.