Tag: SAFE

The primary goal of the cannabis Safe is to address the regulatory complexities that come with raising money in the industry. For example, depending on whether a company is raising a priced round (i.e., selling equity at a fixed valuation) or a convertible security round (i.e., a Safe or convertible note), each triggers different regulatory reporting and/or approval processes.

Think of the SAFE as a convertible note with the event of default, interest, and maturity date provisions stripped out. They come in several forms, with the primary differences between them being interest and maturity.