CFN Media Exclusive Interview with Goldenseed Team
February 11th, 2020
Goldenseed is a vertically-integrated cannabis and hemp company that recently made history as the first private U.S. marijuana business to launch an SEC-qualified stock offering. Based in Santa Cruz, California, Goldenseed is experiencing rapid growth as it continues to ramp up production. Currently in about 80 dispensaries, the company is on track to triple their footprint this year. The response to the stock offering has been robust to say the least, with investors able to own a piece of Goldenseed for as little as $100.
CFN Media recently spoke with Goldenseed CEO Scott Goldie and the company’s securities attorney, Kendall Almerico, to learn more about the stock offering as well as the business’s commitment to sustainability and its plans for the future.
CFN: What is the history of Goldenseed?
Scott Goldie: Our partnership came together in the middle of 2017, to acquire a company in Santa Cruz County that was growing ornamental plants. We closed escrow in December of 2017. We created Goldenseed and carved out a 20 acre piece of the property, a separate parcel, to start an application to grow cannabis. We just recently got approval for a 120,000 square foot cultivation for cannabis, which is a pretty large size. We have control of more property that can take that number as high as 700,000 square feet, but right now, we’re only growing 120,000 square feet.
About six months ago, when hemp became legal in California (it was legal federally, but they had to promulgate the regulations for the state), our grower and my business partner had some of the most significant hemp CBD strains registered in the State. We started growing hemp and we acquired another facility where we can process hemp. The processed hemp will go into a company that we have a joint venture with that will produce hemp cigarettes and also go into wellness products with the CBD.
CFN: You recently made Reg A shares available, a first for a cannabis company. Tell us about the process?
Kendall Almerico: Goldenseed became the first US private cannabis cultivator and processor and brand to get through the SEC qualification process that allows us to sell our stock to the general public. While that’s a long-winded, lawyer sounding answer, what that really means is that we have the ability, and we’re doing that right now, to let everyday people, anyone in the general public, invest at an early stage in Goldenseed. Up until about three years ago, it wasn’t even legal to allow anyone other than wealthy people – well-connected people, and venture capitalists to invest. With some changes in the law, we were allowed to go to the SEC, go through the process, and get qualified to sell to the general public, which is really a ground-breaking thing for us, and for cannabis in general.
SG: The success we’re having with that is really threefold. You raise capital, number one. Number two, you create brand ambassadors all over the country. What we’ve done to date, in ten days, we have applications from a little over 900 investors. We have applications to invest from 45 different states and 14 countries. When this becomes federally legal, we’ll already have a national exposure for our brand, which we think gives us a leg-up on a lot of the other companies.
CFN: How was the response to the offering been?
KA: I’ve done this, on several occasions, with different companies and the response to Goldenseed has been, in my… The one word I keep using is overwhelming. The welcoming attitude of the general public in places, especially, not just in California, but all around the country. When you start having people contacting you from Japan and Kenya to invest in a US cannabis company, it’s really amazing to see word spread about something so unique and noteworthy, as the first company to ever be able to do it. It’s been a great thing to see happen. Overwhelming in the sense of good that being able to spread the word about doing this the right way, has been a very much a positive for everybody.
CFN: Green Day bassist Mike Dirnt is among your brand partners. How has that relationship helped steer the company?
SG: Mike has been working with us for over four years now. A number of other companies might have celebrity affiliations, but Mike is unique in that he actually contributes a lot to the company on the creative side, the branding side, (and) the marketing side. It’s been tremendous. Not only that, obviously he can give a lot of exposure to our brand to the right demographics.
What sets you apart?
SG: One thing that’s really significant, and I think we’re the leader in the industry, is that we grow things 100% sustainably. We don’t have any conventional pesticides, herbicides, or fertilizers. We grow naturally and sustainably.
We start with a worm farm. We have a one acre worm farm where we’re growing worms for the purpose of vermicompost. That becomes the fertilizer and that becomes the soil amendment. It’s mixed with other natural items into a tea that’s fed to our irrigation system.
Our process starts from the very beginning, all the way to the final product. If there is anything left over, we compost. It’s a closed loop system and it’s completely natural.
KA: There’s a great video, if you go on the website, that explains how that all works. When people ask me about the brand, the first thing I show them is that video. It’s just remarkable that you have a company that grows things with the way nature does it. With sunlight, with water, with the worms, with the dirt. Without any of the unnatural things that you see in a lot of, especially the companies that do indoor grows, where they have to do things to make plants grow because there is no sunlight, there are no worms, things like that.
CFN: What can people expect from Goldenseed in 2020?
SG: 2020 should be a big growth year for us because we now have our cultivation. We have our cannabis brand. It’s been very well received in the market. We’ve already won a couple competitions. This year, I could see us being in 200 to 300 dispensaries. I could see our cannabis cultivation growing to a quarter of a million square feet. I see us in the market with hemp cigarettes, with our partner. I think this will be the year where Goldenseed really gets on the map.
CFN: What else should readers know about the company?
KA: We’re at a stage in the cannabis industry, all of us, of infancy. If you harken back to the first days of social media, when Mark Zuckerberg was sitting in his dorm room at Harvard with his friends, and they created Facebook, they created lightning in a bottle. As it started to spread and spread, they had to go out and get money to grow the business. Well, where did they go? How cool would it have been if you could have been one of those people at one of those colleges that was on Facebook in those early days, if you could have invested $100 and owned a little of Facebook. You weren’t allowed to. It was illegal then for the Average Joe to invest in a private company. The only people that benefited from investing at that early stage were venture capitalists who made billions of dollars when the company eventually became what it was, and had their IPO and went public.
Today, we’re at the precipice of the cannabis industry. While I would never suggest to anyone that they should invest because Goldenseed is going to be as big or as financially successful as Facebook, no one knows if that will happen. The fact is, this is an opportunity for people to get in, just like friends of Mark Zuckerberg, who probably wanted to give him $100 or $500, or $1,000, and wanted to invest in a growing business and were not legally allowed to. Now the law has changed, and anyone can invest in Goldenseed at an early stage.
That’s what’s remarkable about this. Being the first company that’s ever been allowed that to do that in the United States, who is a cannabis cultivator. Selling a product totally legal in California, that is still federally banned from being sold. People said we wouldn’t be able to do it. They said the SEC would never qualify it, and we proved them wrong. We’re very proud of that. We’re really excited to bring in people that want to own a piece of this, from anywhere in the United States for the most part, they can invest.
SG: Just to elaborate on that, we launched on Monday, January 6, and then on Tuesday or Wednesday, we sent out a note to everyone that applied to invest in that time. It was 300 or 400 people because it just launched. Then, we did an event that Saturday, starting at 8:30 in the morning. We had 30 people come, some as far as four hours away. One of the comments I got quite a bit, was what Kendall just said, “I’ve never had enough money to really invest in stocks.” It’s almost like the democratization of investment. People can come in for $100, might be another guy coming in for $10,000, but it’s open to everyone. That’s really resonated with people.
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
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