accessibilityaccreditedactiveactivityaimalarmalign-bottomalign-center-horizontalalign-center-verticalalign-leftalign-rightalign-topanchorangelannoyedapplearchivearrow-downarrow-leftarrow-rightarrow-uparticleat-signawardbalanceballoonbandaidbarcodebellbicyclebinocularsblindboatbook-closedbookbookmarkbookmarkedbooksbottlebriefcasebrushbugbullhornbuscabinetcakecalendarcameracarcashcertificatechalkchart-barschart-linechart-piechatcheckmarkchevron-downchevron-leftchevron-rightchevron-upcircle-arrow-downcircle-arrow-leftcircle-arrow-rightcircle-arrow-upcircle-backwardcircle-checkmarkcircle-chevron-downcircle-chevron-leftcircle-chevron-rightcircle-chevron-upcircle-crosscircle-ejectcircle-exclamationcircle-facebookcircle-firstcircle-forwardcircle-googlepluscircle-gustcircle-lastcircle-linkedincircle-minuscircle-nextcircle-pausecircle-play-thincircle-playcircle-pluscircle-previouscircle-questioncircle-stopcircle-twittercircleclipboard-checkclipboardclockcloud-databasecloud-downloadcloud-fogcloud-gearcloud-lightningcloud-lockcloud-raincloud-snowcloud-synccloud-uploadcloudcocktail-glasscodecombinecomment-fillcommentcommentscompassconfusedconnectconstruction-coneconstructioncontactscoolcopycredit-cardcropcrosscrowncubedatabasedeletedesigndesktopdiamonddicedinnerdisconnectdocumentdownloaddrawerdreamdropletdumbbellearthediteggellipsisenter-downenter-leftenter-rightenter-upenterenvelopeevilexcludeexit-downexit-leftexit-rightexit-upexitexpandeye-droppereyefacebookfactoryfeatherfile-audiofile-codefile-imagefile-videofile-zipfilefilm-playfindfirefirst-aidflagflip-horizontalflip-verticalfloppy-diskfolderfootprintframefunnelgamepadgasgeargiftglassglassesgoogleplusgraduationgrin-evilgringroupgungusthamburgerhammerhappy-grinhappyheadsetheart-fillhearthistoryhomeiconsinboxintersectipadiphonekeykeyboardkeyholeknifelablamplaptopleafleave-downleave-leftleave-rightleave-uplibrarylifebuoylighterlightning-boltlinklinkedinlistlocationlocklotusmadmagicmagnetmalletmanmapmedalmeet-downmeet-leftmeet-rightmeet-upmic-mutemicminusmoonmousemovemusic-notemusicmustachemutenavigationneutralnewsoptionsoutletpaint-rollerpaintbrushpairpaper-planepaperclippaperspastepatchpawpenpencilphonephotopicturepinpine-treeplaneplayplaylistplug-cordpluspodiumpowerpresentationprinterprofilepulsepuzzlequestionquote-closequote-openradiorank1rank2rank3receptionrecycleredorefreshregisterreply-allreplyroad-signrocketrulersadscissorsscreensearchshareshieldshipshirtshockedshrinkshufflesignalsitemapskullsmartphonesmilespeed-fastspeed-mediumspeed-slowspell-checksquaresubtractsunsyncsyringetabtablettagtagstargetteacupterminalthumbs-downthumbs-uptickettilestimertoilet-papertonguetoolstrailertraintransmissiontrashtreetrophytrucktvtwitterumbrellaundounlinkunlockuploaduserusersvolume-highvolume-lowvolume-mediumvolumewarningwheelchairwifiwinkwomanwonderingwrenchzoom-inzoom-out

Invest in MJ Hybrid Solutions

Online sales training platform for retailers in the cannabis space.

MJ Hybrid Solutions is offering securities under both Regulation D and Regulation CF through SI Securities, LLC ("SI Securities"). SI Securities is an affiliate of SeedInvest Technology, LLC, a registered broker-dealer, and member FINRA/SIPC. SI Securities will receive cash compensation equal to 7.50% of the value of the securities sold and equity compensation equal to 5.00% of the number of securities sold. Investments made under both Regulation D and Regulation CF involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest. Furthermore, the contents of the Highlights, Term Sheet sections have been prepared by SI Securities and shall be deemed broker-dealer communications subject to FINRA Rule 2210 (the “Excluded Sections”). With the exception of the Excluded Sections noted above, this profile contains offering materials prepared solely by MJ Hybrid Solutions without the assistance of SI Securities, and not subject to FINRA Rule 2210 (the “Issuer Profile”). The Issuer Profile may contain forward-looking statements and information relating to, among other things, the company, its business plan and strategy, and its industry. Investors should review the risks and disclosures. The contents below are meant to be a summary of the information found in the company’s Form C. Before making an investment decision, investors should review the company’s Form C for a complete description of its business and offering information, a copy of which may be found both here and below.


North America Cannabis Market Size

$6.7 Billion

Annual Growth Rate in Cannabis Market

27%

  • In first 60 days of launching, onboarded 15 dispensaries and over 200 users on platform
  • Partnered with Dr. Jean Talleyrand (13 years medical cannabis experience) and The CESC (The Clinical Endocannabinoid System Consortium) to provide accurate, up-to-date cannabis education
  • License agreement with Canadian platform to use content in Canada
  • Gross margins over 90%
  • Graduated from Canopy San Diego (CSD) Cannabis accelerator, received $60,000 in funding
  • Amount raised:  
  • Close date:  
  • Indicated Interest:  
  • Raise Description:  Seed
  • Minimum Investment:  US $500 per investor
  • Security Type:  Crowd Note
  • Valuation Cap:  US $2,500,000
  • Offering Type:   Side by Side Offering

Legitimizing the cannabis industry through proper budtender education and training.


MJ Hybrid Solutions is an online sales training and cannabis education platform that exists to legitimize the cannabis industry through proper dispensary staff education and training. 

The cannabis industry is changing. There are now millions of new consumers, who are coming into dispensaries with very little knowledge looking for a product that is best for their needs. 

Problem:  Although approximately half of budtenders report receiving some sort of formal training, only 20% have any medical background on the health effects of marijuana, and just 13% had received any education on the science of the medical cannabis, researchers have found. This leads to Increased liability, lack of legitimacy, and decreased customer loyalty, which ultimately decreases sales. A properly trained staff is needed to compete in tomorrow's cannabis market. 

Solution:   Our solution is a two-fold approach. In order to effectively meet the consumers' needs, the employee needs to be trained on: 

  1. Cannabis education and science; and
  2. How to effectively communicate to meet each individual's needs. 

We believe this training will ultimately help dispensaries sell more. Our training is all done online through an interactive learning management system. 

Pitch Deck

Product & Service

MJ Hybrid Solutions training is an online interactive series of sales training and cannabis education modules which are done in a micro-learning format. Online access includes: 

  • Interactive learning modules which include videos, role plays/examples, quizzes, and final exams
  • The ability for managers to monitor the progress of each employee within the platform 
  • Step-by-step guide with timeline for managers and businesses to implement training 
  • Certifications issued for each employee on successful completion of training 
  • Official plaque for the retailer to display, showing employees are trained and certified
  • New content added to the platform monthly for ongoing development after the initial training segments and certificate of completion
  • Immediate results such as increase in sales and higher employee morale

We distinguish ourselves from other corporate training platforms by being tailored specifically to cannabis professionals. Although there are educational platforms available for individual one-time training, we believe that they do not provide the sales training that is needed to effectively meet consumers' needs and help increase business profits along with up to date and ongoing cannabis education. 

Media Mentions

Team Story

In the fall of 2014, I became a new medical cannabis consumer and a new cannabis employee. Seeing the benefits that cannabis offered me, I knew I needed to educate and help others on the medicinal benefits of cannabis, so I left my job as a corporate sales trainer to start on the ground floor with a new cannabis company. I quickly realized after starting as a cannabis sales professional that there was hardly any training on cannabis education or on how to effectively sell cannabis. I saw this not only as an opportunity but also as the possible demise of the industry if something wasn't done. I took my passion and knowledge for sales training and cannabis education and created the MJ Hybrid Training System to help others successfully meet their consumers' needs while also increasing profitability. We truly believe that in this industry, compassion equals results. 

Founders and Officers

Melissa Jane Stapley is the founder of MJ Hybrid Solutions and has over 12 years of sales management experience. For the past three years, she has focused solely on sales in the cannabis industry and noticed a common theme for companies to overlook the value of sales training and education specific to the needs of consumers in this space. Melissa graduated from San Diego State University and obtained a Master’s from South University in Organizational Leadership. Her passion for leadership training and cannabis education led to the birth of the MJ Hybrid Training System.

Melissa Stapley

CEO

Melissa Jane Stapley is the founder of MJ Hybrid Solutions and has over 12 years of sales management experience. For the past three years, she has focused solely on sales in the cannabis industry and noticed a common theme for companies to overlook the value of sales training and education specific to the needs of consumers in this space. Melissa graduated from San Diego State University and obtained a Master’s from South University in Organizational Leadership. Her passion for leadership training and cannabis education led to the birth of the MJ Hybrid Training System.

Notable Advisors & Investors

Eric Gomez

Investor, CEO and Founding Partner, Canopy San Diego

Dr. Jean Talleyrand

Advisor, Curriculum Development and Chief Medical Officer, CESC

Kyle Boyar

Advisor, Curriculum Development and Cannabis Scientist

Q&A with the Founder

  • Please detail your platform.
    We provide a white labeled education solution which includes modules, short videos, role-play, and quizzes for workers in the cannabis industry. We focus on both initial and ongoing training, beginning with dispensary workers. Our initial training focuses on sales and customer support. Our modules teach effective customer communication strategies and provide a fundamental understanding of the science and specific challenges associated with cannabis and retail cannabis sales. We also provide ongoing education for workers in the cannabis industry based on new research and trends in the cannabis space. Currently, we are adding 2-4 new ongoing education modules each month.
  • Could you talk a bit about the third-party software you rely on? Do you plan on bringing this in-house and developing a proprietary platform?
    We currently use Talent LMS, a month to month subscription. From a cost perspective, it makes sense for us to leverage a third-party platform until we have 5,000-10,000 users. Once we reach this threshold, we will develop our own in-house platform. We anticipate doing this in 2018.
  • What is your content creation process?
    Our sales and customer support modules were written and produced by me given my background in corporate training. I collaborated with two cannabis scientists/doctors on our initial cannabis and ongoing cannabis training, Jean Talleyrand and Kyle Boyar. Boyar is a paid consultant and Talleyrand is an advisor and equity partner who produces content for us in exchange for a 1% equity stake. We shoot video at the start of the month and release the education modules to our platform during the third week of the month.
  • What is your user acquisition strategy?
    Our current primary target customers are retail dispensaries. We target dispensary owners and managers who roll out our system to their employees. Our initial acquisition strategy is largely based on tapping into our professional and advisors’ networks. Moving forward, we will focus on building strategic partnerships with compliance training organizations with large dispensary and other cannabis business networks. Beginning in 2018, we will also build a regional sales strategy with sales managers focusing on specific territories.
  • Please detail your content licensing.
    Certain clients do not need a platform to train their employees but want access to our content. Currently, we have an agreement with a Canadian company which wants to distribute our content to their network of Canadian dispensaries. For these licensing deals, we will be paid a monthly fee based on usage.
  • The Q&A with the Founder is based on due diligence activities conducted by SI Securities, LLC. The verbal and/or written responses transcribed above may have been modified to address grammatical, typographical, or factual errors, or by special request of the company to protect confidential information.

    Side by Side Term Sheet

    A Side by Side offering refers to a deal that is raising capital under two offering types. If you plan on investing less than US $20,000.00, you will automatically invest under the Regulation CF offering type. If you invest more than US $20,000.00, you must be an accredited investor and invest under the Regulation D offering type.


    Terms & DescriptionRegulation D - Rule 506(c)Regulation CF
    Investor TypesAccredited OnlyAccredited and Non-accredited
    Round descriptionSeedSeed
    Round sizeUS $500,000US $500,000
    Amount raisedUS $0US $24,700
    Minimum investment$20,000US $500
    Target minimumUS $100,000US $100,000
    Security typeCrowd NoteCrowd Note
    Conversion discount20.0%20.0%
    Valuation capUS $2,500,000US $2,500,000
    Interest rate8.0%8.0%
    Closing ConditionsThe Company is making concurrent offerings under both Regulation CF and Regulation D (the "Combined Offerings"). Unless the Company raises at least the Target Amount of $25,000 under the Regulation CF offering and a total of $100,000 under the Combined Offerings (the “Closing Amount”) by the offering end date no securities will be sold in this offering, investment commitments will be cancelled, and committed funds will be returned.The Company is making concurrent offerings under both Regulation CF and Regulation D (the "Combined Offerings"). Unless the Company raises at least the Target Amount of $25,000 under the Regulation CF offering and a total of $100,000 under the Combined Offerings (the “Closing Amount”) by the offering end date no securities will be sold in this offering, investment commitments will be cancelled, and committed funds will be returned.
    Investment Management AgreementAll non-Major Purchasers will be subject to an Investment Management Agreement (“IMA”). The IMA will authorize an investment Manager to act as representative for each non-Major Purchaser and take certain actions for their benefit and on their behalf. Please see a copy of the IMA included with the Company's offering materials for additional details.All non-Major Purchasers will be subject to an Investment Management Agreement (“IMA”). The IMA will authorize an investment Manager to act as representative for each non-Major Purchaser and take certain actions for their benefit and on their behalf. Please see a copy of the IMA included with the Company's offering materials for additional details.

    Investor Perks

    • $2,000 - MJ Hybrid Apparel (shirt and hat).
    •  $10,000 - MJ Hybrid Apparel and 3 months free online training for your or a friend’s dispensary.
    •  $25,000 - MJ Hybrid Apparel and 12 months free online training for your or a friend’s dispensary.
    • $50,000 - MJ Hybrid Apparel, 12 months free online training for your or a friend’s dispensary, and a two-night trip to San Diego Gaslamp for one, including dinner with the MJ Hybrid team. Roundtrip flight and hotel stay included. Additional guests welcome at their own expense.
    • $100,000 - MJ Hybrid Apparel, 12 months free online training for your or a friend’s dispensary, and three-night trip to San Diego Gaslamp for two, including dinner with the MJ Hybrid team. Roundtrip flight and hotel stay included. Additional guests welcome at their own expense.

    It is advised that you consult a tax professional to fully understand any potential tax implications of receiving investor perks before making an investment.

    Prior Rounds

    The graph below illustrates the valuation cap or the pre-money valuation of MJ Hybrid Solutions's prior rounds by year.


    This chart does not represent guarantees of future valuation growth and/or declines.

    Pre-Seed

  • Round Size
    US $20,000
  • Close Date
    Mar 21, 2017
  • Security Type
    Common Equity
  • Pre-Seed

  • Round Size
    US $40,000
  • Close Date
    Jun 26, 2017
  • Security Type
    Convertible Note
  • Valuation Cap
    US $2,000,000
  • Financial Discussion

    Please see the financial information listed on the cover page of the Form C and attached thereto in addition to the following information. Financial statements are attached to the Form C as Exhibit B.

    Operations

    MJ Hybrid Solutions, Inc. was formed on December 28, 2016 and has had limited operations since its inception. The Company is headquartered in San Diego, California and has not realized revenues from its planned operations during the periods ending December 31, 2016 and June 30, 2017.

    As of December 31, 2016, and June 30, 2017, the Company has not commenced full scale operations. The Company’s activities since inception have consisted of product and business development, and efforts to raise capital. Once the Company commences its planned full scale portion operations, it will incur significant additional expenses.

    Liquidity and Capital Resources

    The Company has incurred losses from inception of approximately $28,542 which, among other factors, raises substantial doubt about the Company's ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent upon management's plans to raise additional capital from the issuance of debt, through a Regulation Equity Crowdfunding campaign, or additional equity financing, and its ultimate ability to commence profitable sales and positive cash flows from its application portfolio subscriptions and advertising services. There are no assurances that management will be able to raise a sufficient amount of capital on acceptable terms to the Company, and the inability to do so would require a reduction in the scope of our planned development which would be detrimental to the Company’s business, financial condition and operating results.

    We plan to use the proceeds as set forth above under “use of proceeds”, which is an indispensable element of our business strategy. The Offering proceeds will have a beneficial effect on our liquidity, as we had $14,719 in cash on hand as of September 30, 2017 which will be augmented by the Offering proceeds and used to execute our business strategy.

    The Company does not currently have additional sources of capital.

    Capital Expenditures and Other Obligations

    The Company does not intend to make any material capital expenditures in the future.

    Material Changes and Other Information Trends and Uncertainties

    After reviewing the above discussion of the steps the Company intends to take, potential Purchasers should consider whether achievement of each step within the estimated time frame is realistic in their judgment. Potential Purchasers should also assess the consequences to the Company of any delays in taking these steps and whether the Company will need additional financing to accomplish them.

    Management has evaluated events from December 31, 2016 through November 3, 2017, the date these financial statements were available to be issued, and has determined that the following events require disclosure:

    • In August 2017, the Company entered into an agreement with IRIS RX DBA MEDICANN for the drafting of monthly educational content consisting of 1-2 scripts of approximately 1,500 words each and to consult with and advise the company upon discretion of the Company. The company anticipates granting 100,000 shares of the Company’s common stock representing 1% of the capital stock in the Company, subject to a two-year vesting period to begin one year after the effective date.
    • In October 2017, the board of directors agreed to raise capital in a seed round up to $500,000 in a convertible note. The terms of the offer shall be at 8% interest with a 20% discount at a 2,500,000 valuation.

    The financial statements are an important part of the Form C and should be reviewed in their entirety. The financial statements of the Company are attached thereto as Exhibit B.

    Market Landscape

    The market graph is based on the projected legal cannabis market growth from New Frontier Data through 2020. 


    We believe the market opportunity for online sales training for the cannabis market is huge. Retail jobs currently make up 30% of the cannabis job market which is reported to support approximately 173,000 total cannabis jobs.  Furthermore, there are expected to be 250,000 new cannabis jobs by 2020 as reported by Marijuana Business. As more states get fully on board, the number of dispensaries and cannabis retail stores are anticipated to grow tremendously. In the U.S., there are currently anywhere from 4,000 up to 6,000 dispensaries operating. Colorado, which is an established market, has more dispensaries than it has Starbucks and Mcdonalds. MJ Hybrid Solutions brings much needed corporate training to the cannabis market. We plan to grow our platform to include Business-to-Business and product training which will include distributors and manufacturers. 

    Although there are educational platforms currently available, those platforms focus on multiple areas of the industry including growing, horticulture, and budtender education training for individuals. They have generalized and specialized knowledge on the cannabis plant but not on how to sell cannabis. Our primary focus is on developing an enterprise level corporate training platform to train and educate employees on how to effectively sell cannabis. With other industries reporting that over 94% of companies invest in sales training, we believe that our opportunity to grow and be the corporate training leader in the cannabis space is substantial. 

    Our training consists of sales training and cannabis education. Therefore,  we are not limited to where we can sell our product like most other companies in the cannabis industry. 

    Risks and Disclosures

    We have a limited operating history upon which you can evaluate our performance, and accordingly, our prospects must be considered in light of the risks that any new company encounters.

    We were incorporated under the laws of Delaware on March 10, 2017. Accordingly, we have limited history upon which an evaluation of our prospects and future performance can be made. Our proposed operations are subject to all business risks associated with new enterprises. The likelihood of our creation of a viable business must be considered in light of the problems, expenses, difficulties, complications, and delays frequently encountered in connection with the inception of a business, operation in a competitive industry, and the continued development of advertising, promotions, and a corresponding client base. We anticipate that our operating expenses will increase for the near future. There can be no assurances that we will ever operate profitably. You should consider the Company’s business, operations and prospects in light of the risks, expenses and challenges faced as an early-stage company.

    We may face potential difficulties in obtaining capital.

    We may have difficulty raising needed capital in the future as a result of, among other factors, our lack of an approved product and revenues from sales, as well as the inherent business risks associated with our company and present and future market conditions. Our business currently does not generate any sales and future sources of revenue may not be sufficient to meet our future capital requirements. We will require additional funds to execute our business strategy and conduct our operations. If adequate funds are unavailable, we may be required to delay, reduce the scope of or eliminate one or more of our research, development or commercialization programs, product launches or marketing efforts, any of which may materially harm our business, financial condition and results of operations.

    The development and commercialization of our services is highly competitive.

    We face competition with respect to any products that we may seek to develop or commercialize in the future. Our competitors include major companies worldwide. Many of our competitors have significantly greater financial, technical and human resources than we have and superior expertise in research and development and marketing approved services and thus may be better equipped than us to develop and commercialize services. These competitors also compete with us in recruiting and retaining qualified personnel and acquiring technologies. Smaller or early stage companies may also prove to be significant competitors, particularly through collaborative arrangements with large and established companies. Accordingly, our competitors may commercialize products more rapidly or effectively than we are able to, which would adversely affect our competitive position, the likelihood that our services will achieve initial market acceptance and our ability to generate meaningful additional revenues from our products.

    The Company’s success depends on the experience and skill of Melissa Jane Stapley, who is the sole full time employee.

    Melissa Jane Stapley the Founder and CEO, January 2017 - Present of the Company. The Company has or intends to enter into employment agreements with Melissa Jane Stapley although there can be no assurance that it will do so or that they will continue to be employed by the Company for a particular period of time. The loss of Melissa Jane Stapley or any member of the board of directors or executive officer could harm the Company’s business, financial condition, cash flow and results of operations. If the Company does not hire additional full time employees post-raise, this will impact the Company’s ability to grow.

    The minimum amount of capital the Company is attempting to raise in this Offering is not enough to sustain the Company’s current business plan.

    In order to achieve the Company’s near and long-term goals, the Company will need to procure funds in addition to the amount raised in the Offering. There is no guarantee the Company will be able to raise such funds on acceptable terms or at all. If we are not able to raise sufficient capital in the future, we will not be able to execute our business plan, our continued operations will be in jeopardy and we may be forced to cease operations and sell or otherwise transfer all or substantially all of our remaining assets, which could cause a Purchaser to lose all or a portion of his or her investment.

    We have not prepared any audited financial statements.

    Therefore, you have no audited financial information regarding the Company’s capitalization or assets or liabilities on which to make your investment decision. If you feel the information provided is insufficient, you should not invest in the Company.

    We are not subject to Sarbanes-Oxley regulations and lack the financial controls and safeguards required of public companies.

    We do not have the internal infrastructure necessary, and are not required, to complete an attestation about our financial controls that would be required under Section 404 of the Sarbanes-Oxley Act of 2002. There can be no assurance that there are no significant deficiencies or material weaknesses in the quality of our financial controls. We expect to incur additional expenses and diversion of management’s time if and when it becomes necessary to perform the system and process evaluation, testing and remediation required in order to comply with the management certification and auditor attestation requirements.

    Cannabis remains illegal under federal law, and therefore, strict enforcement of federal laws regarding cannabis could prevent us from executing our business plan.

    Cannabis is a Schedule I controlled substance under the Controlled Substance Act ("CSA"). Even in those jurisdictions in which the manufacture and use of cannabis has been legalized at the state level, the possession, use and cultivation all remain violations of federal law that are punishable by imprisonment and substantial fines. Moreover, individuals and entities may violate federal law if they intentionally aid and abet another in violating these federal controlled substance laws, or conspire with another to violate them. The U.S. Supreme Court has ruled in United States v. Oakland Cannabis Buyers’ Coop. and Gonzales v. Raich that it is the federal government that has the right to regulate and criminalize cannabis, even for medical purposes. We would be unable to execute our business plan if the federal government were to strictly enforce federal law regarding cannabis.

    Financial transactions involving proceeds generated by cannabis-related conduct can form the basis for prosecution under the federal money laundering statutes, unlicensed money transmitter statutes and the Bank Secrecy Act. However, supplemental guidance from the U.S. Department of Justice directs federal prosecutors to consider the federal enforcement priorities enumerated in the "Cole Memo" when determining whether to charge institutions or individuals with any of the financial crimes described above based upon cannabis-related activity.

    Federal prosecutors have significant discretion and no assurance can be given that the federal prosecutor in each judicial district where we purchase a property will agree that our activities do not involve those enumerated in the Cole Memo. Furthermore, based on the Trump administration in general and the stated position of the Attorney General of the United States in particular, there is also no guarantee that the current administration or future administrations will not revise the federal enforcement priorities enumerated in the Cole Memo or otherwise choose to strictly enforce the federal laws governing cannabis production or distribution. At this time, it is unknown whether the Trump administration will change the federal government’s current enforcement posture with respect to state-licensed cannabis. Any such change in the federal government’s current enforcement posture with respect to state-licensed cultivation of cannabis would result in our inability to execute our business plan and we would suffer significant losses and be required to cease operations. Furthermore, if we were to continue the cultivation and production of cannabis following any such change in the federal government’s enforcement position, we could be subject to criminal prosecution, which could lead to imprisonment and/or the imposition of penalties, fines, or forfeiture.

    Any changes in state or local laws that reduce or eliminate the ability to cultivate and produce medical-use cannabis would material negative impact on our business.

    Our ability to grow our business depends on state laws pertaining to the cannabis industry.

    Continued development of the medical-use and adult-use cannabis industry depends upon continued legislative authorization of cannabis at the state level. The status quo of, or progress in, the regulated cannabis industry is not assured and any number of factors could slow or halt further progress in this area. While there may be ample public support for legislative action permitting the manufacture and use of cannabis, numerous factors impact the legislative process. For example, states that voted to legalize medical and/or adult-use cannabis in the November 2016 election cycle have seen significant delays in the drafting and implementation of regulations related to the industry. In addition, burdensome regulation at the state level could slow or stop further development of the medical-use cannabis industry, such as limiting the medical conditions for which medical cannabis can be recommended by physicians for treatment, restricting the form in which medical cannabis can be consumed, imposing significant registration requirements on physicians and patients or imposing significant taxes on the growth, processing and/or retail sales of cannabis, which could have the impact of dampening growth of the cannabis industry and making it difficult for cannabis businesses to operate profitably in those states.

    FDA regulation of medical-use cannabis and the possible registration of facilities where medical-use cannabis is grown could negatively affect the medical-use cannabis industry and our financial condition.

    Should the federal government legalize cannabis for medical-use, it is possible that the U.S. Food and Drug Administration, or the FDA, would seek to regulate it under the Food, Drug and Cosmetics Act of 1938. Additionally, the FDA may issue rules and regulations including certified good manufacturing practices, or cGMPs, related to the growth, cultivation, harvesting and processing of medical cannabis. Clinical trials may be needed to verify efficacy and safety. It is also possible that the FDA would require that facilities where medical-use cannabis is grown register with the FDA and comply with certain federally prescribed regulations. In the event that some or all of these regulations are imposed, we do not know what the impact would be on the medical-use cannabis industry, including what costs, requirements and possible prohibitions may be enforced. If we are unable to comply with the regulations or registration as prescribed by the FDA, we may be unable to continue to operate.

    We may have difficulty accessing the service of banks, which may make it difficult to contract for real estate needs.

    Financial transactions involving proceeds generated by cannabis-related conduct can form the basis for prosecution under the federal money laundering statutes, unlicensed money transmitter statute and the Bank Secrecy Act. Recent guidance issued by FinCen, a division of the U.S. Department of the Treasury, clarifies how financial institutions can provide services to cannabis-related businesses consistent with their obligations under the Bank Secrecy Act. Furthermore, supplemental guidance from the U.S. Department of Justice directs federal prosecutors to consider the federal enforcement priorities enumerated in the "Cole Memo" when determining whether to charge institutions or individuals with any of the financial crimes described above based upon cannabis-related activity. Nevertheless, banks remain hesitant to offer banking services to cannabis-related businesses. Consequently, those businesses involved in the regulated cannabis industry continue to encounter difficulty establishing banking relationships. Our inability to maintain our current bank accounts would make it difficult for us to operate our business, increase our operating costs, and pose additional operational, logistical and security challenges and could result in our inability to implement our business plan.

    The SEC is monitoring the cannabis industry and may halt or prevent the Offering or sale of our securities due to the bad acts of others.

    On May 16, 2014, the SEC’s Office of Investor Education and Advocacy issued an Investor Alert to warn investors about potential risks involving investments in cannabis-related companies. The SEC noted an increase in the number of investor complaints regarding cannabis-related investments. The SEC issued temporary trading suspensions for the common stock of five different cannabis-related companies. Due to the stigma created by the bad acts of others in the industry, the SEC may halt trading and offerings in all cannabis-related companies which would have a material adverse affect on our ability to raise capital and our business.

    Laws and regulations affecting the regulated cannabis industry are constantly changing, which could materially adversely affect our proposed operations, and we cannot predict the impact that future regulations may have on us.

    Local, state and federal cannabis laws and regulations are broad in scope and subject to evolving interpretations, which could require us to incur substantial costs associated with compliance or alter our business plan. In addition, violations of these laws, or allegations of such violations, could disrupt our business and result in a material adverse effect on our operations. It is also possible that regulations may be enacted in the future that will be directly applicable to our proposed business. We cannot predict the nature of any future laws, regulations, interpretations or applications, nor can we determine what effect additional governmental regulations or administrative policies and procedures, when and if promulgated, could have on our business.

    Assets leased to cannabis businesses may be forfeited to the federal government.

    Any assets used in conjunction with the violation of federal law are potentially subject to federal forfeiture, even in states where cannabis is legal. If the federal government decides to initiate forfeiture proceedings against cannabis businesses, we may lose all of our assets.

    We rely heavily on our intellectual property, but we may be unable to adequately or cost-effectively protect or enforce our intellectual property rights, thereby weakening our competitive position and increasing operating costs.

    To protect our rights in our services, we rely on a combination of copyright laws, trade secrets, confidentiality agreements with employees and third parties, and protective contractual provisions. We also rely on laws pertaining to domain names to protect the value of our corporate brands and reputation. Despite our efforts to protect our proprietary rights, unauthorized parties may copy aspects of our services or technology, obtain and use information, marks, or technology that we regard as proprietary, or otherwise violate or infringe our intellectual property rights. In addition, it is possible that others could independently develop substantially equivalent intellectual property. If we do not effectively protect our intellectual property, or if others independently develop substantially equivalent intellectual property, our competitive position could be weakened.

    Effectively policing the unauthorized use of our services and technology is time-consuming and costly, and the steps taken by us may not prevent misappropriation of our technology or other proprietary assets. The efforts we have taken to protect our proprietary rights may not be sufficient or effective, and unauthorized parties may copy aspects of our services, use similar marks or domain names, or obtain and use information, marks, or technology that we regard as proprietary. We may have to litigate to enforce our intellectual property rights, to protect our trade secrets, or to determine the validity and scope of others’ proprietary rights, which are sometimes not clear or may change. Litigation can be time consuming and expensive, and the outcome can be difficult to predict.

    We rely on a third party platform to host our content.

    Our ability to implement and provide our applications and services to our clients depends, in part, on services, goods, technology, and intellectual property rights owned or controlled by third parties. These third parties may become unable to or refuse to continue to provide these services, goods, technology, or intellectual property rights on commercially reasonable terms consistent with our business practices, or otherwise discontinue a service important for us to continue to operate our applications. If we fail to replace these services, goods, technologies, or intellectual property rights in a timely manner or on commercially reasonable terms, our operating results and financial condition could be harmed. In addition, we exercise limited control over our third-party vendors, which increases our vulnerability to problems with technology and services those vendors provide. If the services, technology, or intellectual property of third parties were to fail to perform as expected, it could subject us to potential liability, adversely affect our renewal rates, and have an adverse effect on our financial condition and results of operations. As we scale, we will need to build our own platform and will need to make technical hires to our team to accomplish this.

    We must acquire or develop new products, evolve existing ones, address any defects or errors, and adapt to technology change.

    Technical developments, client requirements, and industry standards change frequently in our markets. As a result, success in current markets and new markets will depend upon our ability to enhance current products, address any product defects or errors, acquire or develop and introduce new products that meet client needs, keep pace with technology changes, respond to competitive products, and achieve market acceptance. Product development requires substantial investments for research, refinement, and testing. We may not have sufficient resources to make necessary product development investments. We may experience technical or other difficulties that will delay or prevent the successful development, introduction, or implementation of new or enhanced products. We may also experience technical or other difficulties in the integration of acquired technologies into our existing platform and applications. Inability to introduce or implement new or enhanced products in a timely manner could result in loss of market share if competitors are able to provide solutions to meet customer needs before we do, give rise to unanticipated expenses related to further development or modification of acquired technologies as a result of integration issues, and adversely affect future performance.

    Industry consolidation may result in increased competition, which could result in a loss of customers or a reduction in revenue.

    Some of our competitors have made or may make acquisitions or may enter into partnerships or other strategic relationships to offer more comprehensive services than they individually had offered or achieve greater economies of scale. In addition, new entrants not currently considered to be competitors may enter our market through acquisitions, partnerships or strategic relationships. We expect these trends to continue as companies attempt to strengthen or maintain their market positions. The potential entrants may have competitive advantages over us, such as greater name recognition, longer operating histories, more varied services and larger marketing budgets, as well as greater financial, technical and other resources. The companies resulting from combinations or that expand or vertically integrate their business to include the market that we address may create more compelling service offerings and may offer greater pricing flexibility than we can or may engage in business practices that make it more difficult for us to compete effectively, including on the basis of price, sales and marketing programs, technology or service functionality. These pressures could result in a substantial loss of our customers or a reduction in our revenue.

    The Company has engaged in Related Party Transactions.

    Specifically, Melissa Stapley (President, CEO) was issued 6,050,00 Founder shares. Additionally, she has personally contributed funds for the startup costs of the Company.

    An investor in the Company, CSD16, LLC (“Purchaser”), has certain redemption rights which could impact noteholders in this offering.

    At any time for so long as Purchaser holds and shares, Purchaser may, by delivery of a written notice to the Company, request that the Company enter into a good faith discussion with Purchaser related to the possible redemption of all Shares then held by Purchaser for a price that is the greater of (a) fair market value of the Shares on a fully diluted as converted basis as determined by an independent third party valuation expert as mutually selected by the Parties or (b) $250,000. If exercised, this action would leave the Company with less cash, and could materially impact Crowd Note holders, as the Purchaser’s right would take preference over Crowd Note holders. Crowd Note holders will not have this same right.

    Melissa Stapley, the CEO of MJ Hybrid Solutions Inc., currently does not have a Founder Shares agreement in place.

    Founder Share agreements typically provide protections to the Company in the event of the Founder’s departure, specifically addressing equity ownership and vesting, capital contributions or calls, valuation and equity splits, among other subjects. As a result, if Melissa were to leave MJ Hybrid Solutions, Inc., the Company could be negatively impacted, creating legal expenses (in the event that the Company sought to renegotiate the repurchase of that equity), or potentially limiting its future fundraising options.

    General Risks and Disclosures

    Start-up investing is risky. Investing in startups is very risky, highly speculative, and should not be made by anyone who cannot afford to lose their entire investment. Unlike an investment in a mature business where there is a track record of revenue and income, the success of a startup or early-stage venture often relies on the development of a new product or service that may or may not find a market. Before investing, you should carefully consider the specific risks and disclosures related to both this offering type and the company which can be found in this company profile and the documents in the data room below.

    Your shares are not easily transferable. You should not plan on being able to readily transfer and/or resell your security. Currently there is no market or liquidity for these shares and the company does not have any plans to list these shares on an exchange or other secondary market. At some point the company may choose to do so, but until then you should plan to hold your investment for a significant period of time before a “liquidation event” occurs. A “liquidation event” is when the company either lists their shares on an exchange, is acquired, or goes bankrupt.

    The Company may not pay dividends for the foreseeable future. Unless otherwise specified in the offering documents and subject to state law, you are not entitled to receive any dividends on your interest in the Company. Accordingly, any potential investor who anticipates the need for current dividends or income from an investment should not purchase any of the securities offered on the Site.

    Valuation and capitalization. Unlike listed companies that are valued publicly through market-driven stock prices, the valuation of private companies, especially startups, is difficult to assess and you may risk overpaying for your investment. In addition, there may be additional classes of equity with rights that are superior to the class of equity being sold.

    You may only receive limited disclosure. While the company must disclose certain information, since the company is at an early-stage they may only be able to provide limited information about its business plan and operations because it does not have fully developed operations or a long history. The company may also only obligated to file information periodically regarding its business, including financial statements. A publicly listed company, in contrast, is required to file annual and quarterly reports and promptly disclose certain events — through continuing disclosure that you can use to evaluate the status of your investment.

    Investment in personnel. An early-stage investment is also an investment in the entrepreneur or management of the company. Being able to execute on the business plan is often an important factor in whether the business is viable and successful. You should be aware that a portion of your investment may fund the compensation of the company’s employees, including its management. You should carefully review any disclosure regarding the company’s use of proceeds.

    Possibility of fraud. In light of the relative ease with which early-stage companies can raise funds, it may be the case that certain opportunities turn out to be money-losing fraudulent schemes. As with other investments, there is no guarantee that investments will be immune from fraud.

    Lack of professional guidance. Many successful companies partially attribute their early success to the guidance of professional early-stage investors (e.g., angel investors and venture capital firms). These investors often negotiate for seats on the company’s board of directors and play an important role through their resources, contacts and experience in assisting early-stage companies in executing on their business plans. An early-stage company may not have the benefit of such professional investors.

    MJ Hybrid Solutions's Form C

    The Form C is a document the company must file with the Securities and Exchange Commission, which includes basic information about the company and its offering and is a condition to making a Reg CF offering available to investors. It is important to note that the SEC does not review the Form C, and therefore is not recommending and/or approving any of the securities being offered.

    Download MJ Hybrid Solutions's  Form C

    Frequently Asked Questions

    About Side by Side Offerings
    What is Side by Side?

    A Side by Side offering refers to a deal that is raising capital under two offering types. This Side by Side offering is raising under Regulation CF and Rule 506(c) of Regulation D.


    What is a Form C?

    The Form C is a document the company must file with the Securities and Exchange Commission (“SEC”) which includes basic information about the company and its offering and is a condition to making a Reg CF offering available to investors. It is important to note that the SEC does not review the Form C, and therefore is not recommending and/or approving any of the securities being offered.

    Before making any investment decision, it is highly recommended that prospective investors review the Form C filed with the SEC (included in the company's profile) before making any investment decision.


    What is Rule 506(c) under Regulation D?

    Rule 506(c) under Regulation D is a type of offering with no limits on how much a company may raise. The company may generally solicit their offering, but the company must verify each investor’s status as an accredited investor prior to closing and accepting funds. To learn more about Rule 506(c) under Regulation D and other offering types check out our blog and academy.


    What is Reg CF?

    Title III of the JOBS Act outlines Reg CF, a type of offering allowing private companies to raise up to $1 million from all Americans. Prior capital raising options limited private companies to raising money only from accredited investors, historically the wealthiest ~2% of Americans. Like a Kickstarter campaign, Reg CF allows companies to raise funds online from their early adopters and the crowd. However, instead of providing investors a reward such as a t-shirt or a card, investors receive shares, typically equity, in the startups they back. To learn more about Reg CF and other offering types check out our blog and academy.


    Making an Investment in MJ Hybrid Solutions
    How does investing work?

    When you complete your investment on SeedInvest, your money will be transferred to an escrow account where an independent escrow agent will watch over your investment until it is accepted by MJ Hybrid Solutions. Once MJ Hybrid Solutions accepts your investment, and certain regulatory procedures are completed, your money will be transferred from the escrow account to MJ Hybrid Solutions in exchange for your shares. At that point, you will be a proud owner in MJ Hybrid Solutions.


    What will I need to complete my investment?

    To make an investment, you will need the following information readily available:

    1. Personal information such as your current address and phone number
    2. Employment and employer information
    3. Net worth and income information
    4. Social Security Number or government-issued identification
    5. ABA bank routing number and checking account number (typically found on a personal check or bank statement)

    If you are investing under Rule 506(c) of Regulation D, your status as an Accredited Investor will also need to be verified and you will be asked to provide documentation supporting your income, net worth, revenue, or net assets or a letter from a qualified advisor such as a Registered Investment Advisor, Registered Broker Dealer, Lawyer, or CPA.


    What is a Crowd Note?

    The Crowd Note is a security which allows crowd investors to largely realize the same economic benefit traditional investors have historically received when investing in startups. For a convertible note round, investors under $20,000 will have their investment convert into preferred equity at liquidity event, locking in a share price at a discount to the next priced round, and will have an interest rate on their investment. Investors investing $20,000 and over will convert into preferred equity at the subsequent priced round at a discount to that priced round and will have an interest rate on their investment. For a priced round, investors under $20,000 will have their investment convert into preferred equity at a liquidity event, locking in the share price of the current round.


    How much can I invest?

    An investor is limited in the amount that he or she may invest in a Reg CF offering during any 12-month period:

    • If either the annual income or the net worth of the investor is less than $100,000, the investor is limited to the greater of $2,000 or 5% of the lesser of his or her annual income or net worth.
    • If the annual income and net worth of the investor are both greater than $100,000, the investor is limited to 10% of the lesser of his or her annual income or net worth, to a maximum of $100,000.

    Separately, MJ Hybrid Solutions has set a minimum investment amount of US $500.

    Accredited investors investing $20,000 or over do not have investment limits.


    After My Investment
    What is my ongoing relationship with the Issuer?

    You are a partial owner of the company, you do own shares after all! But more importantly, companies which have raised money via Regulation CF must file information with the SEC and post it on their websites on an annual basis. Receiving regular company updates is important to keep shareholders educated and informed about the progress of the company and their investment. This annual report includes information similar to a company’s initial Reg CF filing and key information that a company will want to share with its investors to foster a dynamic and healthy relationship.

    In certain circumstances a company may terminate its ongoing reporting requirement if:

    1. The company becomes a fully-reporting registrant with the SEC
    2. The company has filed at least one annual report, but has no more than 300 shareholders of record
    3. The company has filed at least three annual reports, and has no more than $10 million in assets
    4. The company or another party purchases or repurchases all the securities sold in reliance on Section 4(a)(6)
    5. The company ceases to do business

    However, regardless of whether a company has terminated its ongoing reporting requirement per SEC rules, SeedInvest works with all companies on its platform to ensure that investors are provided quarterly updates. These quarterly reports will include information such as: (i) quarterly net sales, (ii) quarterly change in cash and cash on hand, (iii) material updates on the business, (iv) fundraising updates (any plans for next round, current round status, etc.), and (v) any notable press and news.


    How can I sell my shares in the future?

    Currently there is no market or liquidity for these shares. Right now MJ Hybrid Solutions does not plan to list these shares on a national exchange or another secondary market. At some point MJ Hybrid Solutions may choose to do so, but until then you should plan to hold your investment for a significant period of time before a “liquidation event” occurs. A “liquidation event” is when MJ Hybrid Solutions either lists their shares on an exchange, is acquired, or goes bankrupt.


    How do I keep track of this investment?

    You can return to SeedInvest at any time to view your portfolio of investments and obtain a summary statement. If invested under Regulation CF you may also receive periodic updates from the company about their business, in addition to monthly account statements.


    Other General Questions
    What is this page about?

    This is MJ Hybrid Solutions's fundraising profile page, where you can find information that may be helpful for you to make an investment decision in their company. The information on this page includes the company overview, team bios, and the risks and disclosures related to this investment opportunity. If the company runs a side by side offering that includes an offering under Regulation CF, you may also find a copy of the MJ Hybrid Solutions's Form C. The Form C includes important details about MJ Hybrid Solutions's fundraise that you should review before investing.


    How can I (or the company) cancel my investment under Regulation CF?

    For offerings made under Regulation CF, you may cancel your investment at any time up to 48 hours before a closing occurs or an earlier date set by the company. You will be sent a reminder notification approximately five days before the closing or set date giving you an opportunity to cancel your investment if you had not already done so. Once a closing occurs, and if you have not canceled your investment, you will receive an email notifying you that your shares have been issued. If you have already funded your investment, your funds will be promptly refunded to you upon cancellation. To cancel your investment, you may go to your portfolio page


    What if I change my mind about investing?

    If you invest under any other offering type, you may cancel your investment at any time, for any reason until a closing occurs. You will receive an email when the closing occurs and your shares have been issued. If you have already funded your investment and your funds are in escrow, your funds will be promptly refunded to you upon cancellation. To cancel your investment, please go to your portfolio page.