ParagonCoin has put up its cannabis co-working space for sale. The startup had intended to use the property as a working space for the cannabis industry. However, the space has failed to attract the traction that it was initially hoped it would.
ParagonCoin revealed the sale in a filing with the Securities and Exchanges Commission (SEC) that was made public recently. The building is located in Los Angeles and was acquired by the startup on May 1, 2018. The total amount paid for the property, both in cash and loan was $4.015 million. The property is now up for sale for $4.2 million, with ParagonCoin claiming that it decided “not to pursue this aspect of our initial business plan at this time.”
Moreover, the firm revealed that it would not invest in real estate any time soon:
“We currently do not intend to renovate, improve, or develop other properties. We currently do not intend to make further investments in real estate or acquire any interests in real estate and do not intend to make investments in real estate mortgages. Further, we do not intend to make investments in securities of or interests in persons primarily engaged in real estate activities.”
The filing also revealed just how much the startup was struggling to bring in revenue. In 2018, it brought in just $4,350. The operating expenses stood at $5.8 million, with the net loss for the year standing at $10.1 million. However, it’s still hopeful that it can turn things around and pursue its original plan.
“We anticipate that if we have sufficient funding, which is not assured, we can complete all aspects of the program by approximately the end of 2019, although there is no assurance we will be able to do so.”
ParagonCoin became among the first crypto startups last year that the SEC cracked down on. The regulator announced in November that ParagonCoin and Airfox had both agreed to pay a $250,000 fine for selling unregistered securities. The two had also agreed to compensate investors as well as register their tokens as securities.
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