Press release content from Globe Newswire. The AP news staff was not involved in its creation.
General Cannabis to Create Retail Footprint by Acquiring Trees Dispensaries
General Cannabis CorpApril 21, 2021 GMT
Once complete, the acquisition will add 2 retail locations in Colorado and 3 in Oregon, bring on a seasoned retail team, and create vertical integration in Colorado.
Upon closing, consolidated revenue is expected to triple. The Company expects to be cash flow positive as all retail locations open and ramp.
Total consideration for the transaction is $39.5 million, payable 13% in cash and 87% in stock.
General Cannabis is expanding its convertible debt round to fund the cash required at the closing of the transaction.
News Category Global Banking & Finance Reviews
General Cannabis Corp Strengthens Balance Sheet by Raising New Capital, Retiring Existing Debt and Extinguishing Put Obligation
General Cannabis Corp Strengthens Balance Sheet by Raising New Capital, Retiring Existing Debt and Extinguishing Put Obligation
DENVER, Jan. 04, 2021 General Cannabis Corp (OTCQB: CANN) today announced that it has raised over $2.9 million of senior convertible promissory notes (“Notes”) and extinguished an existing put obligation. Collectively, these actions restructure the Company’s debt, reduce its interest expense, increase its operating cash and provide additional financial flexibility.
In conjunction with this capital raise, the Company has now rolled or extinguished over $2 million of its outstanding short-term debt, which carried a 15% annual interest rate and was to come due in the first quarter of 2021, and replaced it with Notes that have a 10% annual coupon and mature in December 2023.�