Risk Warning

Investing in start-up and early stage businesses can be very rewarding, but investing in those businesses involves a number of risks. To invest in businesses through Illinois Cannabis Funding, you need to understand the following five important risks:

1. Risk of Loss of Investment

Most startup businesses fail and therefore investing in these businesses may involve significant risk and it is likely you may lose all, or part, of your investment. You should only invest an amount that you are willing to lose and should build a diversified portfolio to spread risk. If a business you invest in fails, neither the company - nor Illinois Cannabis Funding - will pay you back your investment.

2. Risk of Lack of Liquidity

Liquidity is the ease with which you can sell your securities after you have purchased them. Buying securities in businesses pitching through Illinois Cannabis Funding cannot be sold easily as they are unlikely to be listed on a secondary trading market, NASDAQ, AMEX, or the New York Stock Exchange. Even successful companies rarely list securities on such an exchange. In addition, if you purchase B Investment Shares, these are non-voting shares and may not be attractive to potential buyers. Without a public market to find a buyer for securities it may be more difficult to sell them. Investment in crowdfunding assets should be viewed as a long term and illiquid investment. Current rules state you must generally keep any purchased securities at least twelve months from the acquisition date.

3. Risk of Rarity of Dividends

Dividends are payments made by a business to its shareholders from the company's profits. Most of the companies seeking financing via equity crowdfunding are startups or early stage companies, and these companies will rarely pay dividends to their investors. Profits are typically reinvested into the business to fuel growth and build shareholder value. Businesses have no obligation to pay shareholder dividends.

4. Risk of Possibility of Dilution

Any investment made through equity crowdfunding may be subject to dilution in the future. Dilution occurs when a company issues more shares. Dilution affects every existing shareholder who does not buy any of the new shares being issued. As a result, an existing shareholder's proportionate shareholding of the company is reduced, or 'diluted'. This has an effect on a number of things, including voting, dividends and value. Some businesses who pitch through equity crowdfunding offer Seed Shares, which may include pre-emption rights that protect an investor from dilution. In this situation the business must give shareholders with Seed Shares the opportunity to buy additional shares during a subsequent fundraising round so that they can maintain or preserve their shareholding. Please research the pitch and the Articles of the company to see if the shares you are buying will have these pre-emption rights.

5. Risk of the Need for Investment Diversification

Diversification consists of spreading your money across multiple investments to lessen your investment risk. Unfortunately, while diversifying is a crucial part of investing, it will not reduce every type of risk. You should only invest a portion of your available investment funds through Illinois Cannabis Funding and balance your Illinois Cannabis Funding investment with safer, more liquid investments. Please note that diversification does not assure a profit or provide a guarantee against investment loss.

6. Risks Associated with Corporate Bond

There is no assurance that the Issuer will have any assets to pay bond holders in the event of a liquidation and in that event, the bond holders can lose their entire investment. Interest payments are not guaranteed.

7. Risks Associated with Corporate Debenture

There is no assurance that the Issuer will have any assets to pay debenture holders in the event of a liquidation and in that event, the debenture holders can lose their entire investment. Interest payments are not guaranteed.

8. Risks Associated with Revenue Participation Rights

There is no assurance that the Issuer will have any revenue to pay the revenue participation rights holders. Also in the event of a liquidation the revenue participation rights holders can lose their entire investment

IllinoisCannabisFunding.com is a website operated by Community Crowdfunding, LLC, an Illinois limited liability company (“Community Crowdfunding”). Neither Community Crowdfunding, nor any of its agents or representatives, provide any investment advice or make any investment recommendations to any persons, ever, and no communication through this website or in any other medium should be construed as such. By accessing this website and any pages thereof, you agree to be bound by our Terms of Service and Privacy Policy.

Investment opportunities posted on this website are “private placements” of securities that are not publicly traded, are subject to holding period requirements, and are intended for investors who do not need a liquid investment. Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT guaranteed by Community Crowdfunding, and MAY lose value. Neither the Securities and Exchange Commission (SEC) nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment.

Any financial projections or returns shown on this website are illustrative examples only, and there can be no assurance that any valuations provided are accurate or in agreement with market or industry valuations. Additionally, please note that past performance is not indicative of future performance. Any investment information contained herein has been secured from sources Community Crowdfunding believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefor. Offers to sell, or the solicitations of offers to buy, any security can only be made through official offering documents that contain important information about risks, fees and expenses.

Users of this website are responsible for doing your own due diligence before making a decision to invest and are not permitted to, and should not, rely on the financial assumptions or estimates displayed on this website. Further, users of this website are strongly advised to consult their own counsel, accountant, investment advisor or manager, and/or business advisor, as to the legal, tax, and related matters concerning any potential investment opportunities presented on this website.

Unless otherwise specifically identified on this website with respect to a particular offering the securities listed on this Site may only be purchased by residents of the State of Illinois and only individuals who have their primary residence in the state of Illinois, and entities who are formed and qualified to do business in Illinois, will be permitted to access offering information with respect to, and will be permitted to participate in, the offerings listed on the website. Without limiting the generality of the forgoing, Unless otherwise specifically identified on this website with respect to a particular offering the securities listed on this Site, THE OFFERING MATERIALS PROVIDED ON THE SITE WITH RESPECT TO ANY OFFERING IS NOT INTENDED TO, AND DOES NOT, CONSTITUTE AN OFFER OR SOLICITATION TO ANYONE WHO IS NOT A RESIDENT OF THE STATE OF ILLINOIS.

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