Braingrid Corp, a Toronto-based data platform for cannabis growers, has secured close to $2.6 million in its latest financing. The investors in the round included several venture capital firms, among them Quinsam Capital Corp, a Canadian cannabis merchant bank. Launched in 2012 by CEO Michael Kadonoff, Braingrid has developed a sensor system, called Sentroller, that captures real-time data needed by cannabis growers to increase revenue and reduce costs and risks. The company will use the funds raised to expand research, further execute its strategy, and support marketing related to lead generation and customer acquisition.
Braingrid raises over $2.5M to drive its growth in the Cannabis tech space
TORONTO, Feb. 21, 2018 /CNW/ – Braingrid Corporation (the “Company” or “Braingrid”) is pleased to announce that the Company has closed a non-brokered private placement financing of 6,568,000 units (“Units”) of the Company at a price of $0.40 per Unit, for aggregate gross proceeds of $2,587,200 (the “Offering”). Each Unit consists of one (1) common share in the capital of the Company (a “Common Share”) and one-half (1/2) of one Common Share purchase warrant (a “Warrant”). Each full Warrant will be exercisable to purchase one Common Share at a price of $0.80 for eighteen (18) months after the Issuer (or a successor issuer) becomes a “reporting issuer” in one or more Canadian jurisdictions and the listing of the Common Shares (or shares into which the Common Shares may be exchanged) on a recognized North American stock exchange. EMD Financial Inc. acted as finder on behalf of a syndicate of finders. The investor group in the Offering includes a number of venture capital funds including Quinsam Capital Corporation.
Braingrid intends to use the net proceeds from the Offering for general corporate purposes, such as continuing expansion of its R&D department as well as furthering the execution of its long-term roadmap. Braingrid also intends to fund marketing expenditures related to lead generation and customer acquisition. The Company intends to seek a public listing on the Canadian Securities Exchange in the next 90 days.
“We are dedicated to fostering innovation in the burgeoning Cannabis industry,” said Roger Dent, CEO at Quinsam. “Braingrid is aptly positioned to fill the ever-growing need for cultivation technology that assists growers in optimizing their cannabis grow. We are excited to see what is next for them.”
Braingrid completed its first Cannabis related venture in 2016 and since then has solidified itself as a force to be reckoned with in the rapidly expanding industry. With this private placement, Braingrid expects to further its capabilities and continue leveraging its partnerships, like with Ample Organics, as well as forging new relationships to expand its product breadth.
“We are very pleased to close this round of funding which will allow us to continue toward our goal of enabling customers on a global level,” said Michael Kadonoff, CEO at Braingrid. “Our team is excited and ready to enter our next phase of growth.”
Braingrid provides an affordable, versatile and quick-to-install sensor platform that captures the critical real-time data needed by cannabis growers to increase revenues, reduce costs and reduce risks.
Quinsam is a merchant bank based in Canada that is focusing on cannabis-related investments. Its merchant banking business may encompass a range of activities including acquisitions, advisory services, lending activities and portfolio investments. Quinsam invests its capital for its own account in assets, companies or projects which it believes are undervalued and where it sees a viable plan for unlocking such value. Quinsam does not invest on behalf of any third party and it does not offer investment advice.
Ample Organics is the most widely adopted seed-to-sale software solution among Canada’s licensed medical marijuana producers, designed specifically for compliance with Health Canada’s Access to Cannabis for Medical Purposes Regulations, or ACMPR.
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Photo courtesy of Reuters/Rick Wilking