Green Check Verified, a regtech company focused on compliant cannabis banking solutions and services, will be announcing an over subscribed $2.4 million Convertible Note Financing, Benzinga has learned exclusively.
The round, led by Flatiron Venture Partners, included investments from Bravos Capital, Basecamp and Senior Banking Lawyers & Executives, as well as pre-existing investors Silverleaf Venture Partners and Fenway Summer.
Following the new infusion of funds, Green Check will have raised a total of $5 million since inception.
“Flatiron is thrilled to be the lead investor as we believe that Green Check Verified’s offerings are crucial to supporting the infrastructure of the rapidly growing cannabis sector,” says Tamara Totah, Managing Partner of Flatiron Venture Partners. “Green Check has not only created a best-in-class RegTech product, but their experienced management team has demonstrated the ability to efficiently execute on key business objectives."
Green Check's product enables financial institutions to bank high-risk, cash-intensive companies that face hurdles with access to financial services, she explained.
"In short: Green Check has the product, vision, experienced team, growth potential and momentum to become a leader in the FinTech space – serving cannabis, and beyond," Totah added. "We’re excited to have led this round, and are looking forward to continuing to help support Green Check’s strategic growth and future success.”
Use Of Proceeds
Green Check Verified CEO and founder Kevin Hart plans to use the new money to expand the product’s features and the company’s national team.
“As a result of November ballot initiatives, several more states are in the process of implementing legalized medical and/or adult-use cannabis programs, and that doesn’t even include the states that are on the cusp of such initiatives given the success of programs in surrounding states,” he told Benzinga. “Green Check Verified’s technology and advisory services are relevant in all of these states, but we need to have the staff resources in place to serve as true, hands-on partners to new institutions pursuing cannabis banking.”
Hart also highlighted that Green Check not only works with banks and credit unions to develop new programs, but also with those transitioning away from manual programs that are “impractical and often untenable in the eyes of regulators.”
The company will also use the funds to spread the message around the opportunities and best practices related banking cannabis, and to continue to provide “the expert level of program development or improvement our clients have come to expect.”
Green Check Verified currently operates in 24 states, serving more than 400 cannabis-related businesses.
“As an organization, we continually invest in our technology to not only satisfy but to exceed our partners’ demands, and we have some exciting additions we will be announcing at the end of Q1," Hart continued. "Cannabis-related businesses are vastly underserved, and there is no shortage of opportunities to expand the services we provide to both the banks and CRBs we work with. This additional funding enables us to do that quicker and more effectively.”
Lead image by Ilona Szentivanyi. Copyright: Benzinga.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Meet the biggest cannabis industry players and make deals that will push the industry forward.
Featuring live company presentations, insider panels, and unmatched access to networking, the Benzinga Cannabis Capital Conference is where cannabis executives and entrepreneurs meet.
Join us April 11-12, 2023 at Fontainebleau Miami Beach in sunny Florida.