Units include four-year warrants, 9.5% convertible promissory notes
By Devika Patel
Knoxville, Tenn., June 22 – Americann, Inc. negotiated a $5 million private placement of units, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The company will sell 200 units of a $25,000 9.5% secured convertible promissory note due June 22, 2019 and warrants for 20,000 shares at $25,000 per unit. The notes are initially convertible into common stock at $1.25 per share. The warrants are each exercisable at $3.00 until June 22, 2020.
The conversion price is a 17.92% premium to the June 21 closing share price of $1.06. The warrant strike price is a 183.02% premium to that price.
The notes will be secured by a first lien on a 52.6-acre parcel of land in Freetown, Mass., which the company will purchase with a portion of the placement’s proceeds.
The Denver company owns and supports medical cannabis cultivation and processing facilities.
| Issuer: | Americann, Inc.
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| Issue: | Units of a $25,000 secured convertible promissory note and warrants for 20,000 shares
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| Amount: | $5 million
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| Units: | 200
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| Price: | $25,000
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| Coupon: | 9.5%
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| Maturity: | June 22, 2019
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| Conversion price: | $1.25
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| Conversion premium: | 17.92%
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| Warrants: | Warrants for 20,000 shares per unit
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| Warrant expiration: | June 22, 2020
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| Warrant strike price: | $3.00
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| Announcement date: | June 22
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| Stock symbol: | OTCBB: ACAN
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| Stock price: | $1.06 at close June 21
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| Market capitalization: | $17.63 million
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