12% note due May 10, 2017 was bought by JSJ Investments via offering
By Devika Patel
Knoxville, Tenn., Aug. 19 – United Cannabis Corp. sold a $125,000 12% convertible note to JSJ Investments, Inc. on Aug. 10, according to an 8-K filed Friday with the Securities and Exchange Commission. The deal raised $109,500 of net proceeds, accounting for an original issue discount of $6,250 and legal fees.
The note is due May 10, 2017 and converts into common shares at $0.20 per share, a 4.76% discount to the Aug. 9 closing share price of $0.21, in the first 180 days. After 180 days, the note converts to stock at 55% of the lowest trading price of the stock during the 10 trading days preceding conversion.
The note may be prepaid in the first 180 days at 125 in the first 60 days and at 130 in days 61 through 180.
Based in Denver, the company offers medical cannabis products and services.
Issuer: | United Cannabis Corp.
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Issue: | Convertible note
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Amount: | $125,000
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Maturity: | May 10, 2017
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Price: | $109,500 of net proceeds, including $6,250 original issue discount
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Coupon: | 12%
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Conversion price: | $0.20 in the first 180 days, then 55% of the lowest trading price of the stock during the 10 trading days preceding conversion
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Warrants: | No
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Investor: | JSJ Investments, Inc.
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Settlement date: | Aug. 10
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Stock symbol: | OTCBB: CNAB
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Stock price: | $0.21 at close Aug. 9
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Market capitalization: | $7.83 million
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