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GMICC FAQ Sheet

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This answers some frequently asked questions about joining the GMICC.

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GMICC FAQ Sheet

  1. 1. 1 | P a g e GMICC FAQ (Frequently Asked Questions) Sheet Here are some frequently asked questions about the GMICC (Georgia Minority Investment Cannabis Collaborative). Q1: Will there be any predetermined “vetting” of anyone joining the group? A1: No. Since you do not have to be an “accredited investor” in order to pool funds for investing as LLC members, there is no financial vetting to do. Q2: Who will decide who will manage the fund? A2: Technically, once the investments are made by the LLC members, it’s not a “fund” in the sense of a venture fund. It’s just a pot of money. Unless the group decides, no one will be picking investments for the group. The plan is to work with the group to come up with a set of vetting procedures (such as an application and/or presentation) before investing some of the pooled money into invesments. Q3: Can the group invest in hemp opportunities as well? A3: Yes. The group can invest in anything it wants. Hemp is actually 90% of the billion dollar industry. Q4: How much will you be investing? A4: Nothing. Under the bill, I am prohibited from investing more than a 5% ownership in any licensee or part of the process. To keep down confusion, I will stay out of investing at all. Q5: How much will LLC members be required to invest? A5: Any amount you want. Once the group is formed, the group will decide how much they want to raise to be competitive in this market. So if the group wants to raise $100,000 and you invest $10,000, then you have a 10% stake ($10,000$100,000) so long as the raise doesn’t increase. Q6: What will be your role with the organization? A6: My role is as the initial attorney setting up the entity and infrastructure with the required filings and documentation and initially advising as to “best practices” for vetting possible investments and connecting with other service providers. After my work is completed, the group can decide to continue to retain me or seek other legal counsel. I have NO OWNERSHIP in the GMICC whatsoever.
  2. 2. 2 | P a g e Q7: Where will my $500 investment go? A7: This is not an investment of any sorts into cannabis opportunities. This is a membership fee to join the group to be able to invest in opportunities. It will go to initial start-up costs and fees. Q8: The deadline to submit the $500 is July, 26th right? A8: The deadline is July 26th OR once we get 50 sign-ups (i.e. paid members), whichever happens first. We have had over 300 people download our proposal online and have 10 sign ups. Q9: When will the group start making investments? A9: That is up to the group but I suggest not until the group has a written plan for vetting investments. The group could also wait until the Commission has been appointed and confirms the detailed regulations of securing a license. There are suppliers who need capital now but I would wait until everything has been set in place before investing. Q10: Will there be a MOU (memo of understanding) to sign that memorializes what the $500 membership fee is for? A10: Absolutely. You can view a draft of it online now however, that is subject to change based on the final number of people that sign up.

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