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Edward Corona: [00:00:19] Initially they think they could just go to strike or something
like that and set up a merchant account when they get the aid that they've got in
decline. They're like oh god why I'd hate to think that this was going to happen. But this
was the basic. Well let me do your paper and then think I got that paid. How did it. So
then I'm like Well where do I go.
Dan Humiston: [00:00:44] From Buminit media it's the MJ bulls podcast a show about
Raising Cannabis Capital. I'm Dan Humiston. Today's show how processing investors
payments is helping cannabis companies unlock crowdfunding as a way to Raising
Dan Humiston: [00:01:06] Today in the cannabis investor Spotlight Series we're joined
by Edward Corona from the fintech group. Thanks for being on the MJBulls Podcast.
Edward Corona: [00:01:15] Glad to be here.
Dan Humiston: [00:01:16] Yeah I was reading through your Web site and you created
this payment process platform and it's sort of just fell into place when regulations
changed in 2012 and you're perfectly positioned for helping companies with their
crowdfunding is that correct.
Edward Corona: [00:01:32] Yeah that's correct. When the JOBS Act came out in 2012
we really carved out quite a niche for ourselves. So within that industry with our
Edward Corona: [00:01:41] So for our listeners really the next step after the friends and
family round a lot of people go right to seed round. But there's a there's a step in
between that really could be probably is beneficial and as easy to do as anything and
that is crowdfunding. So maybe you can talk to us a little bit about this phase and how
your company provides a solution for this phase.
Edward Corona: [00:02:06] Yeah sure what my company does is what a lot of these
issues were doing when they set up their offering and the whole reason behind
crowdfunding is to go directly to the crowd directly to the investor with the offerings that
are that are available right now you are able to do advertising and reach out to those
investors without violating any type of FINRA regulations. So that puts the issuers in a
very good position to reach out directly to the crowd and advertise their offering when
the investor goes to their website or wherever they direct them and they want to invest
into that company. What our platform does is it allows that investor to easily at the time
that they're feeling the investment to fund the funds over and invest in the company. We
do everything in real time.
Edward Corona: [00:02:58] So we have an Invest now buy in or reserve shares in
depending on the type of oil offering and the investor can do it right there on the spot
green light which is amazing because as my listeners already know this but for anybody
who's new to this show in cannabis we can't use PayPal we can't use a lot of the credit
card processing systems that most industries don't struggle with. So this is a real
Edward Corona: [00:03:23] Absolutely and that's the market that we identified and our
solution serves that need.
Dan Humiston: [00:03:28] So if somebody wants to make an investment let's just walk
us through the process. I'm an investor. Well let's start with the issuer. I'm a company
I'm raising capital. I put the word out on through my advertising channels that I'm raising
money. Take it from there.
Edward Corona: [00:03:42] So at that point when an investor wants to make an
investment in that company they would put money in back. Now buy the invest now buy
and would collect the information that we need their information their dress their outback
information where they want to make the payments and then they would hit submit at
that point what my system does is we verify that if they are legitimate bank account
through our verification system and then we process that transaction. So it works very
similar to an AC H type of platform. But the main difference between us and the ACA is
we have far more verification and we deposit those funds the following business day
into the insurer's business account. There's not a three to five day delay that you would
get in your traditional type of HGH platform. We also are for additional options they can
do it online. The issuer can take the information over the phone and they can do it that
way. They can even send an email or text messages or text message invoice and the
investor can up their investment that way.
Edward Corona: [00:04:43] So it's very streamlined and everything's done in real time
so we get that much quicker.
Dan Humiston: [00:04:51] Want to do a quick thank you to one of our former guests
blaze which is a cannabis technology company with software for dispensaries
distributors. And coming soon manufacturers and cultivators. Listen MJBulls episode 33
recorded blaze.me learn how you can be part of their expansion.
Dan Humiston: [00:05:10] And now back to the show and you mentioned that you do
some sort of backgrounding or verification that the accounts are legit or there may be
suspect can talk a little bit more about that.
Edward Corona: [00:05:23] Yeah. When I verification process does and is we look at a
couple of things as soon as that person checks out and it clicks on the authorization we
are run it through very fast databases that we work with and what those databases do is
first of all they verify that it's a legitimate USA bank account. So that's the first part. It's
not. Well then maybe they check that out after that's verified. What we do is our
database called the positive and negative data on where the funds are coming from on
the bank with the funds are coming from but there's negative data on that account. We
have an alert system which would alert the issuer that we collected that information and
there's about 200 different types of verifications that replace what the issuer can do at
that point as they can choose to override it if they want to take a chance on that. There's
a good chance that those funds will not clear. So if they want to get on the phone or if
they want to work to further verification on their debt they can do that or they can just
decline it if there's positive information on the account of streamlined and it goes right
through and there's no other it's just the positive to follow business.
Dan Humiston: [00:06:28] Okay. We've been speaking with Ed Corona from the fintech
group in all of his information. Fin texts email address and Ed's email address and
fintech Web site will be on the MJBulls Web site. But this is a great solution for people
that are considering doing crowdfunding or stitcher cannabis companies that are
considering doing crowdfunding because I know a lot of people talk to me about
crowdfunding and they don't even know where to begin. They're just like it's voodoo
science. No one even like everyone is like wow I want to do it and everyone else is
doing it but I don't. I think that you make this it seems like you make this really simple
Edward Corona: [00:07:06] Even if you have the money the whole 58 crowd funding
right now is market and you can spend a lot of money in marketing and marketing that
offering and you'll get it out there. The marketing is out there and it's available. You can
raise funds by doing it but people love a lot. They say well OK now that I have this in
place how do I get the money. Do I get to you know have these people send a wire to
me. I mean initially they think they could just go to stripe or something like that and set
up a merchant account and when they got a program that they said decline they're like
oh god why I would hate to think that this was going to happen. I thought this was a
basic. Well let me do your paper. And then they find out that people are going to be able
to do that. So they are like Well where do I go. Anyhow they start structuring and you
know people find it that way but mainly they find us for being referred to us through one
of the sources.
Dan Humiston: [00:07:54] Well the show should drive to more attention to it more eyes
to your site. And is there any last words you like to leave with our listeners before we
Edward Corona: [00:08:01] Well that sums it up pretty well locked down and they have
Edward Corona: [00:08:04] Visit my website at green tech work merchant dot com and
we get a there's a lot of information there and I'm always available if they want to be just
me by Boehner. Schedule a board meeting. I'm happy to do that in answer any other
questions that they may have.
Dan Humiston: [00:08:20] Sounds good. This is a really I think necessary solution to
another problem that we have in the cannabis industry so thanks. So. Thanks for
coming on this show and explaining this to us.
Edward Corona: [00:08:29] You bet Dan. Thanks for having me. I appreciate it.
Dan Humiston: [00:08:32] You're welcome. Good luck.
Dan Humiston: [00:08:35] Just a quick reminder that you can become an MJ MJBulls
member for just four dollars and ninety nine cents per month and enjoy exclusive
access to companies pitch decks and the MJ MJBulls cannabis capital directory joined
today at MJBulls.com.
Dan Humiston: [00:08:51] Thanks for listening to the MJBulls Podcast. To learn more
about today's guest or to become a guest.
Dan Humiston: [00:08:56] Visit our website at MJBulls Podcast. Today's show is
produced by Buminit media with original music composed by Jamie Humiston i'm Dan
Humiston. You've been listening to MJBulls Podcast.