General Cannabis raises over $2.9M of senior convertible promissory notes

General Cannabis announced that it has raised over $2.9 million of senior convertible promissory notes and extinguished an existing put obligation. Collectively, these actions restructure the Company's debt, reduce its interest expense, increase its operating cash and provide additional financial flexibility. In conjunction with this capital raise, the Company has now rolled or extinguished over $2 million of its outstanding short-term debt, which carried a 15% annual interest rate and was to come due in the first quarter of 2021, and replaced it with Notes that have a 10% annual coupon and mature in December 2023. The new Notes do not begin paying cash interest until 2022, giving the company more flexibility in 2021. Note holders received warrants to purchase up to 20% of the value of their Notes in common stock at a strike price of $0.56, and also have an option to convert up to 50% of the Notes into shares of common stock at a premium to the current market price, with a floor of $0.65 per share and a ceiling of $1.00. Every member of the Company's Board participated in the raise, underscoring the Board's belief in the direction of the Company. Simultaneously, the Company announced that Barker Dalton, one of its largest shareholders and the founder of SevenFive Farm, has waived his right to put one-quarter of his shares to the Company in exchange for cash.