DENVER, April 20, 2018 (GLOBE NEWSWIRE) -- General Cannabis Corp. (OTC:CANN), the comprehensive national resource to the regulated cannabis industry, today announced that it completed the closing of a private placement transaction with various private parties, including existing and new investors in General Cannabis.
The Company issued $5.54 million of senior secured promissory notes and an aggregate of 4,432,000 warrants to purchase common stock at the closing. The notes bear interest at 8.5% per annum and are secured by all of the Company’s assets. The warrants have an exercise price of $2.35 per share. If the shares underlying the warrants are not registered for resale on a registration statement within six months, the Company will issue an additional warrant to each investor at the same exercise price for one-half of the shares covered by the initial warrant.
The proceeds of this debt raise will be used primarily to fund the Company’s expansion and for working capital.
“This new capital raise will allow us to continue to deliver increased value to our shareholders,” said Robert Frichtel, Chief Executive Officer of General Cannabis Corp. “We are managing our cost of capital through these transactions and creating a significant amount of working capital to continue our acquisition strategy in the cannabis industry. With this transaction, we consider ourselves well capitalized to take advantage of the many opportunities that we see emerging in the near future.”
Michael Feinsod, Executive Chairman of the Board added, “This financing represents another step in our plan for growth in the cannabis space. We appreciate the confidence of our investors and look forward to delivering shareholder return. We continue to aggressively seek acquisitions.”
The securities sold in the private placement have not been registered under the Securities Act of 1933, as amended, or state securities laws and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (SEC) or an applicable exemption from such registration requirements. The Company has agreed to file a registration statement with the SEC registering the resale of the shares of common stock issuable upon exercise of the warrants.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful.
About General Cannabis Corp
General Cannabis Corp is the comprehensive national resource for the highest quality service providers available to the regulated cannabis industry. We are a trusted partner to the cultivation, production and retail sides of the cannabis business. We do this through a combination of strong operating divisions such as security, marketing, operational consulting and products, real estate and financing. As a synergistic holding company, our divisions are able to leverage the strengths of each other, as well as a larger balance sheet, to succeed. Our website address is www.generalcann.com.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include statements regarding the ability of the new capital raise to deliver increased value to our shareholders; statements regarding creating a significant amount of working capital to continue our acquisition strategy; statements regarding the Company being well capitalized to take advantage of opportunities in the future; and statements regarding the Company continuing to aggressively seek acquisitions..
Any statements that are not statements of historical fact, such as the statements described above, should be considered forward-looking statements. Some of these statements may be identified by the use of the words “may,” “will,” “believes,” “plans,” “anticipates,” “expects” and similar expressions. General Cannabis has based these forward-looking statements on current expectations and projections about future events as of the date of this press release. These forward-looking statements are not guarantees of future performance, conditions or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as result of a number of factors, including those described from time to time in General Cannabis’ most recent Annual Report on Form 10-K under the heading “Risk Factors” and in subsequent filings with the Securities and Exchange Commission. General Cannabis undertakes no duty to update any forward-looking statements made herein.