Alchemy Kings 420 Fund
What Is It?
The Alchemy Kings 420 Fund is America’s only active cannabis fund open and available to all investors and featuring full vertical integration. Interested investors need not be accredited or of certain financial means in order to participate.
Technically speaking, the Alchemy Kings 420 Fund is a Regulation A+ Tier II private investment fund.
This new fund invests in a wide variety of diverse businesses within the cannabis industry, emphasizing professionalism in an industry often plagued with stereotypes and unrealistic expectations. We partner with companies and individuals who have a proven business track record, and not simply a dream.
Some of the types of businesses and projects that this new fund will be involved in include:
- Processing and manufacturing
- A bakery and/or commercial kitchen that infuses cannabis into their products
- Testing laboratory (assuring quality, purity, consistency, and potency)
- Retail dispensaries
- Home delivery services
- A vineyard that will provide “wine and weed” tours with both growing on site
- A cannabis friendly restaurant and lounge
- Commercial real estate, including a high-rise commercial building where some of these businesses can operate including the lounge which would be on the roof so that those smoking or vaping won’t bother others.
- And much more…
What Does It Cost?
Each share costs $4.20 and there is a 100 share minimum purchase requirement. This is a private fund, which means that there is a limited market for selling shares once purchased. You cannot buy, sell, and trade these shares on a public stock exchange. While you can sell a portion of or all of your shares, there needs to be a ready buyer. With that in mind, investors are encouraged to invest with a long-term mindset.
Who Can Invest?
Investors do not need to be accredited to invest in this Fund. There are no restrictions as to who can invest, but there are some limits on how much you can invest if you are a non-accredited investor.
For Tier II offerings such as this one, non-accredited investors can invest up to 10% of the greater of either their annual income or net worth (not including their primary residence). There is no such restriction for accredited investors. Those seeking to invest more than the 10% limitation must verify and document their status as an accredited investor.
Furthermore, non-accredited investors can self-certify their income making for a simpler investment process and less paperwork required.
US and international investors are both able and welcome to invest in the 420 Fund.
What Kind of Return Can I Expect?
The companies that we are partnering with are a combination of established business with a track record and newly established companies with limited financial records. Investors are encouraged to consider financial projections carefully. We are actively interviewing a wide variety of different businesses, some of whom may and others who will not end up in the Fund.
The first company we’ve decided to partner with is an edibles company. While we have not yet formalized the agreement with them yet or prepared financial projections, this is a company with a 100-year family recipe and a long track record of successfulness and profitability. Now they’re looking to get into the edibles market.
We are also building a laboratory testing facility. When most people think of getting into the cannabis industry they think of cultivation. But with so many people focused on growing, there are some gaps in the market. One major gap at the moment is in laboratory testing which is why we’re starting our own lab to test the potency, purity, quality, and consistency of products from other producers. Third-party verification is very important and we will soon be providing this essential service.
Initial projections are provided below. The expenses in the table do not account for the acquisition of a building and/or preparing the building to be operational. These additional costs are expected to be approximately $21,397 per month. This translates to an overall profit of $173,167 each month after the initial nine months where one-time costs are being paid off. During the first year this would generate a 52% ROI for investors. That return would be significantly higher after the first year.