Advanced Cannabis Solutions, Inc. Secures $30 Million Credit Facility
January 21 2014 - 9:20AM
Marketwired
Advanced Cannabis Solutions, Inc. Secures $30 Million Credit
Facility
COLORADO SPRINGS, CO--(Marketwired - Jan 21, 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.
Contact
Information ACS, Inc. Investor Relations (406) 862-5400
Email Contact
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