Today, Cal-Bay reported its reception of a $7 million capital funding proposal for a 3-year term note for its CB Green Card merchant processing system. The system will provide U.S.-based legal marijuana dispensaries with a credible channel for receiving purchase payments from their patients.
Cal-Bay entered into a memorandum of understanding for the funding proposal, and the proposal’s terms will be fully disclosed once the definitive agreement is executed at close of Escrow. The proceeds will be used for completion of Cal-Bay’s Green Card merchant processing network as well as production of POS terminals required for use by the dispensaries.
To date, using credit cards for purchases from dispensaries has not been available because of differences in federal and state law regarding marijuana product sales. The majority of purchase transactions have been carried out in only cash. Cal-Bay’s merchant processing system gives registered dispensaries another method for accepting payment, as the system gives them the ability to accept and process patients’ CB Green Card and have the proceeds deposited in their financial institution.
With Cal-Bay’s merchant card processing system, registered dispensaries will not have to sit on large amounts of cash and will have a verifiable transaction of sales for federal and state tax collection agency records. To date, there are over 2,000 legally licensed marijuana dispensaries in 23 states in the U.S. They project over $3 billion in sales for 2014, a 100 percent increase from sales in 2013.
For more information, visit: http://www.calbayco.com/
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