Business
Schwazze Announces Transformational Capital Raise, Entry Into New Mexico & Provides Business Update
Schwazze Announces Transformational Capital Raise, Entry Into New Mexico & Provides Business Update.
About this update from Medicine Man Technologies Inc.
[{"type":"text","content":"\n\n\n\nSchwazze Announces Transformational Capital Raise, Entry Into New Mexico & Provides Business Update\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\nSchwazze Announces Transformational Capital Raise, Entry Into New Mexico & Provides Business Update\nPR Newswire\nDENVER, Dec. 3, 2021\n\n\n\nTransformational $95 Million Private Financing for M&A Initiatives & Further Expansion Plans\nSigns Definitive Agreement to Acquire & Manage New Mexico Assets: Reynold Greenleaf & Associates, R. Greenleaf Organics, Medzen Services, Elemental Kitchen & Laboratories  \nSchwazze Transitions to a Regional Operator with New Mexico Acquisitions\nOTCQX: SHWZ\n DENVER, Dec. 3, 2021 /PRNewswire/ - Schwazze, (OTCQX:SHWZ) (\"Schwazze\" or the \"Company\"), one of the largest vertically integrated cannabis operators in Colorado, has entered into a securities purchase agreement with institutional investors and individuals under which the Company will issue and sell, subject to customary closing conditions, $95 million of principal amount and $93 million of funding amount (reflecting a 2% original issue discount) of convertible notes.  The Company anticipates using the proceeds from the note to fund the cash consideration of recently announced acquisitions and other growth and expansion initiatives.\nThe notes will accrue 13% interest per year (9% payable in cash and 4% accreting to the principal amount), have a 5-year term and will be secured by a first lien on the unencumbered assets and a second lien on the encumbered assets of the Company and its subsidiaries.  The note will be convertible into shares of the Company's common stock at any time at a conversion price  to be set upon issuance equal to 117.5% of the lower of the volume weighted average of the closing prices of the Company's common stock during (i) five trading days before the date on which the Company entered into a binding commitment to issue the notes, (ii) 30 trading days before the date of issuance of the notes and (iii) five tr...