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.”