Advanced Cannabis Solutions, Inc. Secures $30 Million Credit Facility
COLORADO SPRINGS, CO–(Marketwired – Jan 24, 2014) – On January 21, 2014 Advanced Cannabis Solutions (OTCQB: CANN) signed a definitive agreement with Full Circle Capital Corporation, a closed-end investment company. The agreement provides that the investment fund will initially provide $7.5 million to the Company in the form of Senior Secured Convertible Notes, subject to certain conditions. An additional $22.5 million can be borrowed by Company with the mutual agreement of the Company and the investment company.
At least 95% of the loan proceeds will be used to acquire properties which the Company, consistent with its business plan, will lease to licensed cannabis growers. The six-year loan will be secured by real estate acquired with the loan proceeds, and will require interest-only payments at a rate of 12% per year.
The initial loan can, at any time, be converted into shares of the Company’s common stock, at a conversion price of $5.00 per share. It is contemplated that further advances will be convertible at 110% of the share price on the day of advance, or the ten-day volume-weighted average price leading up to the day of advance, whichever is lower. In addition, the investment fund will receive 1,000,000 three-year warrants to purchase common shares at $5.50 per share.
The funding of the loan financing is subject to the execution of additional documents between the parties. Robert Frichtel, President, commented, “We greatly appreciate this vote of confidence in the CANN business model and management team as we work to grow our Company.”
About Advanced Cannabis Solutions
ACS provides a comprehensive set of solutions to the regulated cannabis industry. The Company does not grow, harvest, distribute or sell cannabis or any substances that violate United States law or the Controlled Substances Act, nor does it intend to do so in the future.
The Company leverages its management team’s extensive experience in serving the cannabis industry by providing the following three distinct areas of products and services: real estate, consulting, and ancillary products. ACS plans to work exclusively with licensed and regulated clients. Visit here.