Advanced Cannabis Solutions secures $30-mn credit facility

REGULATED cannabis grower, Advanced Cannabis Solutions (ACS), said it has signed a definitive agreement with Full Circle Capital Corporation, a closed-end investment company, which will initially provide $7.5 million to ACS in the form of senior secured convertible notes, subject to certain conditions, and an additional $22.5 million in loanable funds.

Advanced Cannabis Solutions (OTCQB: CANN), based in Colorado Springs, Colorado, USA, does not grow, harvest, distribute or sell cannabis or any substances that violate United States law or the Controlled Substances Act, nor does it intend to do so in the future. The company leverages its management team's extensive experience in serving the cannabis industry by providing the following three distinct areas of products and services: real estate, consulting, and ancillary products

At least 95% of the loan proceeds will be used to acquire properties which ACS, consistent with its business plan, will lease to licensed cannabis growers.

The six-year loan will be secured by real estate acquired with the loan proceeds, and will require interest-only payments at a rate of 12% per year.

The initial loan can, at any time, be converted into shares of ACS common stock, at a conversion price of $5.00 per share. It is contemplated that further advances will be convertible at 110% of the share price on the day of advance, or the ten-day volume-weighted average price leading up to the day of advance, whichever is lower. In addition, the investment fund will receive 1,000,000 three-year warrants to purchase common shares at $5.50 per share.

The funding of the loan financing is subject to the execution of additional documents between the parties.

Colorado is one of 20 states in the USA allowing the use of medical marijuana. It is also the first state to allow retail recreational marijuana sales to adults age 21 and older (Marketwired)