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Rocky Mountain High Brands Announces $12 Million Equity Financing Agreement
Rocky Mountain High Brands Announces $12 Million Equity Financing Agreement.
About this update from Rocky Mountain High Brands, Inc.
[{"type":"text","content":"\n\n DALLAS, Oct. 17, 2017 (GLOBE NEWSWIRE) -- Rocky Mountain High Brands, Inc. (OTCQB:RMHB), a fully reporting consumer goods company specializing in hemp-infused food and beverage products and a naturally high alkaline spring water, announced today that it closed on a $12 million equity financing agreement through GHS Investments, LLC (“GHS”). \n Under the agreement, the Company will file an S-1 Registration Statement with the Securities and Exchange Commission covering the resale of common stock to be purchased by GHS. Once the Registration Statement is approved, the Company will finance its operations through the sale of its stock for up to $12 million, which will be totally at the Company’s discretion.  Additionally, it provides the Company the ability to buy back less favorable convertible debt the Company was forced to secure in the last fiscal year because of circumstances described below and allows the Company to have greater control to minimize the dilution of the Company’s stock in the marketplace. Michael Welch, Chairman, President and Chief Executive Officer, stated, “The Company recently filed its 10-K for the fiscal year ended June 30, 2017, which is the last fiscal year under the former leadership of the Company.  Our current management team was led to believe that when the former chairman sold his controlling interest to LSW Holdings, LLC (“LSW”) on February 28, 2017 that LSW was contractually obligated to fund the Company to move forward with the Company’s expansion plans.  That funding did not occur. After the former chairman’s departure on June 30, 2017, we obtained an executed copy of his stock purchase agreement and determined that it contained no such requirement.  As a result, the Company immediately started pursuing other funding sources through its relationships with investment bankers.” After considering several options, the Company chose GHS Investments, LLC (GHS), a leading private investment and management group providing financial solutions for small cap enterprises. GHS entered into the agreement with RMHB following extensive due diligence, management interviews, and detailed analysis of the Company. The Company worked with Moody Capital as its investment banker in the transaction. Michael Welch continued, “...