DENVER, Sept. 22, 2016 (GLOBE NEWSWIRE) -- General Cannabis Corporation (OTCQB:CANN), the all-in-one resource to the regulated cannabis industry, today announced that it completed the initial closing of a $3.0 million private placement transaction with various private parties including existing noteholders of the Company.
The Company issued $2.8 million of senior secured promissory notes and an aggregate of 8,400,000 warrants to purchase common stock. The notes bear interest at 12% per annum and are secured by all of the Company’s assets.
The proceeds of this debt raise will be used primarily to fund the Company’s expansion, repayment of existing mortgages, senior secured debt, and for working capital, as well as to pay any fees and expenses associated with the placement.
“This debt raise will allow us to deliver increased value to our shareholders,” said Robert Frichtel, Chief Executive Officer of General Cannabis Corporation. “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 marijuana industry.”
Mr. Frichtel added, “The impact of replacing existing debt and this new capital is exceptional. It positions General Cannabis to continue its strategy of acquiring emerging companies in the cannabis space. 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, Chairman of the Board added, “This financing represents a significant step forward in positioning the Company’s capital structure to better support our strategic growth plans while bringing additional value to our shareholders.”
General Cannabis Corporation is the all-in-one resource for the highest quality service providers available to the regulated Cannabis Industry. We are a trusted partner to the cultivation, production and retail side of the cannabis business. We do this through a combination of strong operating divisions such as real estate, consulting, security, financing and the distribution of important infrastructure products to grow facilities and dispensaries. As a synergistic holding company, our subsidiaries 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 presentation contains forward-looking statements which relate to future events or General Cannabis’ future performance or financial condition. Any statements that are not statements of historical fact (including statements containing the words “believes,” “should,” “plans,” “anticipates,” “expects,” “estimates” and similar expressions) should also be considered to be forward-looking statements. These forward-looking statements are not guarantees of future performance, condition 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’ filings with the Securities and Exchange Commission. General Cannabis undertakes no duty to update any forward-looking statements made herein.
Contact Robert Frichtel CEO – General Cannabis Corp (303) 759-1300
Source:General Cannabis Corporation