Transatlantic Real Estate LLC announced its Regulation Crowdfunding (Regulation CF) offer on real estate investment in cannabis. The minimum venture entry that the company is offering is $300, which is perfect for non-accredited investors who are trying to get into the cannabis industry. The company sees the opportunity of combining real estate and cannabis industries together.
Transatlantic Real Estate announces crowdfunding offer for cannabis real estate
Transatlantic Real Estate LLC announced its Regulation Crowdfunding (Regulation CF) offer on real estate investment in cannabis. The minimum venture entry that the company is offering is $300, which is perfect for non-accredited investors who are trying to get into the cannabis industry.
The company aims to encourage prospective capitalists who seek to expand their portfolios with cannabis stocks. With legal marijuana market expected to be worth $146.4 billion by 2025, this would be a great time for investors to start their cannabis portfolios.
What Transatlantic Real Estate aims
With this crowdfunding offer, Transatlantic Real Estate allowed non-accredited investors to invest. That was not possible for investors with a net worth of below $1 million before Obama’s Jumpstart Our Business (JOBS) Act.
The company sees the opportunity of combining real estate and cannabis industries together. Cannabis growers require land properties in order to cultivate the plants and with this demand, investing in cannabis-related properties is one way of benefiting from the growing industry.
California is the focus of Transatlantic company
Currently, the company centers its attention in California, where cannabis cultivation is legal. One of the current struggles by cannabis growers in the state is the lower profit margins in growing cannabis, because of the decreasing market share as more farms continue to grow the plant as well.
What the company is trying to offer is a chance for growers to increase crop yield through their recently acquired licensed farm in Santa Barbara County.
Investors get to take advantage of Transatlantic Real Estate’s ownership interest in a premium property in southern California. The company also said that it has identified the highest value improvements in its properties, which could eventually provide a higher appreciation value.
The company also continues to source and evaluate other investment opportunities for more cannabis farms acquisition portfolios to operate under the same non-plant touching, hold and lease model.
Why is it a great time to invest in cannabis?
More regulatory bodies from different countries are becoming more permissive when it comes to cannabis. Canada just recently legalized recreational use of marijuana on a national level, per CNN. This makes Canada the second country to make such legislation, following Uruguay, which legalized recreational marijuana in December 2013.
There is also a breakthrough towards cannabis in relation to the pharmaceutical industry as the U.S. Food and Drug Administration (FDA) approved Epidiolex. It is the first drug that FDA approved that has cannabidiol or CBD in its ingredients. CBD is a chemical compound found in the cannabis plant (both marijuana and hemp) that does not have psychoactive properties.
With the recent approval, more pharmaceutical companies are looking into using cannabis compounds into treating or managing several medical conditions. This means that in the future, there could be a great demand for cannabis, making cannabis farms more valuable in the real estate industry.
The Fundanna crowdfunding platform
The company used the platform Fundanna, a crowdfunding portal to cannabis companies. The platform allows at least $100 investment from potential investors. Its platform caters to both investors and businesses that seek funding.
You can read Transatlantic Real Estate’s pitch in its Fundanna page. There are 28 days left before the crowdfunding offer ends.
(Featured Image by TeroVesalainen)
Comments are closed for this post.