Editors note: This is not an endorsement of this offering.
North Carolina-based Franny’s Farmacy announced on Friday, January 31st, the launch of its third online public offering. The company said the goal of this online public offering is to support the expansion of Franny’s Manufacturing, where all of its Franny’s branded edibles, topicals, lotions, treats, and more are made for the men, women, children, and pets they call loyal customers.
So far the company has raised $47, 586 from 85 investors. The company’s valuation is listed as $3 million. Shares are priced at $2.
The shares have no voting rights and if for any reason the company ceases operation, investors will only receive money after all creditors have been paid. The shares are also restricted and cannot be sold for at least 12 months. CEO Jeff Tacy, and Franny Tacy, are the owners of Franny’s Farmacy. Franny is the first female hemp farmer in North Carolina. They each own 50% of the voting shares.
“Franny’s Manufacturing is where the magic happens! All Franny’s branded products are manufactured in small, custom-made batches in Asheville, North Carolina. We create the recipes and techniques that our customers know and love right here!” says Franny Tacy.
The offering is planned for purchasing more equipment and expanding operations. With six dispensaries already open, Franny’s Farmacy is on track to open 20-25 franchise dispensaries by the end of 2020. The company’s current monthly expense is $30,000 and has revenue of $40,000 for the same month, which was October 2019. The company says it does not need the money to operate but needs it for expansion.
“Franny’s Manufacturing is a critical component in our vertically integrated supply chain. To continue to build our manufacturing infrastructure, we’ve decided to turn to crowdfunding and give you, the investor, an opportunity to get in on the ground floor of a quickly emerging industry,” says Jeff Tacy.
“We currently have 7 Corporate entities owned that make up the business: Franny’s Farm, (3) Franny’s Farmacy Dispensaries, Franny’s Manufacturing, Franny’s Franchising and Franny’s Distribution. Each of the companies has separate bank accounts and accounting methods. Franny’s Brand does not currently have a parent company and all companies are of equal legal status in the eyes of the State of North Carolina.”
The founders have raised $535 thousand dollars with two prior fully oversubscribed Reg CF raises.