Leafbuyer Technologies Secures $4.5M in Private Placement to Build America's Largest Legal Cannabis Marketplace

On July 5, 2019, VCBeat (WeChat ID: vcbeat) learned that cannabis transaction company Leafbuyer Technologies announced it had entered into securities purchase agreements with two investment firms, raising $4.5 million through a private placement of common stock and warrant shares.

Leafbuyer estimates that the net proceeds from this offering will be approximately $4.04 million, after deducting underwriting discounts and commissions and estimated offering expenses. Subject to customary closing conditions, the offering is expected to close on July 8, 2019. Leafbuyer intends to use the net proceeds from this offering for corporate acquisitions, working capital, and general corporate purposes.

Leafbuyer, founded in 2012 and headquartered in Colorado, USA, is the largest cannabis transaction network company in the United States. Leafbuyer is committed to partnering with cannabis dispensaries and product companies across the U.S. to provide consumers with legal cannabis transactions. Leafbuyer is also recognized as the industry’s first one-stop shop integrating cannabis advertising, education, and information.

Leafbuyer distinguishes itself from other cannabis retailers by offering consumers customized website experiences. The customer data collected by Leafbuyer helps consumers make more informed choices when selecting cannabis companies. Through Leafbuyer’s “Dispensaries Near Me” page, consumers can locate the nearest dispensaries and find high-quality products at the most competitive prices.

Leafbuyer understands the philosophical differences among companies, so its in-house industry experts provide practical marketing strategies tailored to each one. The Leafbuyer team customizes its services based on each client’s unique needs, collecting customer information and feedback to ensure every client receives a distinct, personalized brand experience. Additionally, clients can update their deals daily on the Leafbuyer website.

In the private placement, Leafbuyer entered into a registration rights agreement with investors, under which Leafbuyer agreed to file a registration statement with the U.S. Securities and Exchange Commission (SEC) to register the resale of shares, the warrants issued in the transaction, and the common shares issuable upon exercise of such warrants. In the private investment in public equity (PIPE) offering, Leafbuyer will issue 7,211,538 shares of common stock, Series A warrants to purchase 7,211,538 shares of common stock, and Series B warrants to purchase 1,802,885 shares of common stock.

Kurt Rossner, Chairman and Chief Executive Officer of Leafbuyer, commented, “We are highly satisfied with the outcome of this private placement. We believe this financing will enable the Company to execute its multi-faceted growth strategy and lay the foundation for the first phase of its strategic plan. Furthermore, we anticipate that the completion of this offering will improve our balance sheet position, with the warrants providing additional capital to the Company upon exercise.”

Dawson James served as the exclusive placement agent in this private placement; Ward and Smith, based in Wilmington, North Carolina, acted as counsel to the company; Schiff Hardin LLP, based in Washington, D.C., served as counsel to the placement agent; and Ellenoff Grossman & Schole LLP, based in New York, acted as counsel to the investors.

(Compiled by Cheng Tao)