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Marijuana Company of America Announces Filing of Registration Statement on Form S-1 to Receive up to $10M to Fund Expansion
Marijuana Company of America Announces Filing of Registration Statement on Form S-1 to Receive up to $10M to Fund Expansion.
About this update from Marijuana Company Of America, Inc.
[{"type":"text","content":"\nESCONDIDO, Calif., Dec. 27, 2018 (GLOBE NEWSWIRE) -- via NetworkWire – MARIJUANA COMPANY OF AMERICA INC. (“MCOA” or the “Company”) (OTC: MCOA), an innovative hemp and cannabis corporation, is very pleased to announce that it has filed a Form S-1 Registration Statement with the U.S. Securities and Exchange Commission (SEC). This is an important step in helping the Company to raise the necessary capital to fund its projects and expand its operations in 2019.\n The Company’s registration statement included a prospectus pertaining to the resale of up to 500,000,000 shares of its Common Shares, issuable to K&J Funds, LLC (“K&J”), a selling stockholder, pursuant to a “put right” under an investment agreement (the “Investment Agreement”), dated December 20, 2018, that the Company entered into with K&J. The Investment Agreement permits the Company to “put” up to ten million dollars ($10,000,000) in shares of its common stock to K&J over a period of up to thirty-six months or until $10,000,000 of such shares have been “put.” The total amount of shares of common stock that can be sold in the prospectus would constitute approximately 20.08% of the Company’s issued and outstanding common stock, assuming that the selling security holder will sell all of the shares offered for sale. Don Steinberg, CEO stated: “We are extremely excited to have K&J as our financial partner for MCOA. They understand the history of the Company, our clear vision for the future and the enormous market within our reach, as reflected by this substantial commitment. This funding will give us the capital needed to expand our hempSMART brand into Europe and Asia in 2019 and prepare for our continued expansion into the hemp industry as a grower and processor in California and other areas.\" “We are happy that we are moving away from relying on convertible debt financing with variably priced conversion terms that are less favorable to our shareholders to equity financing. This will show the strength of our market capitalization and help to build a stronger balance sheet as we continue to execute our aggressive growth plans for 2019. I believe our shareholders will begin to fully appreciate our long-term strategy as we continue to realize ...