As the cannabis industry grows, people and companies from other trades are rapidly migrating toward it. From Fortune 500 execs to former politicians, and from banks to beer makers, smart money seems to want a piece of the green rush.
However, it is not usual to hear that a cannabis-focused company is venturing outside of the cannabis arena. Yet, this is what CannaRegs, co-founded by Amanda Ostrowitz, former regulator at the Federal Reserve Bank of Kansas City, is about to do.
As Ostrowitz revealed exclusively today, Regs Technology – or RegsTech for short, the parent company to CannaRegs, which operates a data platform that provides comprehensive cannabis-related legal data, including rules and regulations from municipal, county, state and federal sources, just closed a $2 million funding round. Money will be used to expand the company’s services and features, as well as to take a leap outside the cannabis industry. The raise will be announced later on Tuesday.
About The Company
RegsTech is a legal technology platform for highly regulated industries that are hyper-localized in nature. Its first product offering, CannaRegs, is a subscription platform that enables cannabis operators, law firms, investors, real estate professionals, consultants, and governments to track cannabis regulation and policy in real-time. Among its customers are pot behemoths Caliva (which recently received investments from former Yahoo CEO Carol Bartz and NFL legend Joe Montana) and Cresco Labs, the City and County of San Francisco, the City of Sacramento, and law firms like Akerman.
Back in 2017, publicly traded MassRoots almost acquired CannaRegs for $12 million. However, the deal fell through after MassRoots’ CEO, Isaac Dietrich, was ousted by his board. While Dietrich regained control of his company only a few days after the ordeal, the whole saga stunted the M&A effort in relation to CannaRegs.