Business
General Cannabis Announces Agreements to Extend Existing Debt
General Cannabis Announces Agreements to Extend Existing Debt.
About this update from Trees Corporation
[{"type":"text","content":"\n\n DENVER, April 13, 2016 (GLOBE NEWSWIRE) -- General Cannabis Corporation (OTCQB:CANN) today announced that it has reached agreements with substantially all of the holders of its existing indebtedness to dates beyond January 2017. Subject to certain conditions, the Company expects the restructuring transactions to close by April 30, 2016.\n The maturity dates of all indebtedness are expected to be extended to at least January 31, 2017 on substantially the same terms and conditions as the previous debt arrangements.  The refinancings are not expected to contain any material changes to existing covenants or other terms of the respective credit facilities, beyond those described above.  In connection with the refinancings, the Company will issue warrants to purchase its common stock at $1.07 per share.  The warrants will have a one-year term. General Cannabis anticipates issuing a total of approximately 750,000 warrants in connection with the refinancings.  The Company anticipates certain fees and noncash expenses associated with the transaction, but does not expect to incur any prepayment premiums as a result of the refinancing.  “We appreciate our lenders’ confidence in General Cannabis and in our ability to continue to execute our business plan.  These modifications extend all maturities until at least 2017 allowing management to focus on current operational objectives,” said Robert Frichtel, Chief Executive Officer.  \"These transactions are an important part of the financial management component of our business plan,” continued Frichtel. \"The extensions provides us with time and additional flexibility to pursue organic growth opportunities and shareholder-enhancing initiatives.\" “Having built the premier platform in the cannabis industry, we are now focusing on future expansion and acquisitions.  These refinancings give us the flexibility to pursue numerous strategic opportunities,” noted Executive Chairman Michael Feinsod.  He continued, “We are excited about the future for General Cannabis.” The Company internally managed the restructuring negotiations.  General Cannabis was advised by Sichenzia Ross Friedman Ference LLP in the refinancing process. AboutGeneral Cannabis Corporation is the all-in-one resource for the highest...