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AmeriCann Completes $2,000,000 Equity Financing
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Plans to Expand to New Markets Including California
DENVER, CO/ November 8th, 2016 / AmeriCann, Inc. (ACAN: OTCQX), a company that plans to develop sustainable, state-of-the-art medical cannabis cultivation properties, has completed a $2,000,000 all equity private placement consisting of stock and warrants.
AmeriCann led the round with material participation by GVC Capital, LLC, a FINRA licensed broker/dealer, AmeriCann’s CEO and President, Tim Keogh, and individual accredited investors. The private placement originally consisted of $1,000,000 but due to strong demand the overallotment option was exercised to expand the offering to its maximum of $2,000,000.
The offering consisted of shares of Common Stock and callable Warrants. The total subscribed proceeds were $2,000,000 before deducting commissions and other estimated offering expenses payable by the company. The Warrants would provide proceeds of an additional $6,000,000 to the Company if all Warrants are exercised. The Company completed the offering on November 7th, 2016.
The proceeds from the placement will be utilized for the Company’s Massachusetts Medical Cannabis Center (the “MMCC”) development, to pursue new opportunities in California, Pennsylvania, Florida and other states, and general corporate purposes.
AmeriCann recently completed the purchase of a 53-acre Massachusetts property from Boston Beer Company (SAM-NYSE) for $4,475,000 cash. The Company plans to develop the property as the Massachusetts Medical Cannabis Center, one of the largest and most technologically advanced cannabis cultivation facilities in the nation. The MMCC is approved for nearly 1,000,000 square feet of medical cannabis cultivation and processing in Freetown, Massachusetts. The state-of-the-art, sustainable, greenhouse project will consist of multiple planned phases for tenants in the Massachusetts medical marijuana market.
The first phase plans for MMCC are based on demand from the existing medical market. AmeriCann will monitor the vote in Massachusetts on adult-use on November 8th and may modify the development schedule accordingly. The Company has plans for an early spring groundbreaking and first cannabis production in fall of 2017.
The legal cannabis industry has experienced dramatic growth in recent years, twenty-five states and the District of Columbia have regulated the use of cannabis. Additionally, nine states with over 30% of the United States population will be voting on November 8th regulating the sale of cannabis for medicinal or recreational use. Most ballot measures favoring cannabis are polling favorably.
“The state [Massachusetts] could become one of the biggest regulated cannabis markets in the country; bigger than Colorado and Washington State,” according to Marijuana Business Daily. The Boston Globe recently reported the regulated cannabis market in Massachusetts may exceed $1 billion by 2020.
The respected Wall Street firm of Cowen & Co recently released a research report projecting dramatic growth for the regulated cannabis industry from the current $7 billion nationally to over $50 billion in ten years.
About AmeriCann
AmeriCann is a publicly traded company that plans to develop and lease sustainable, state-of-the-art medical cannabis cultivation properties. The Company has over 1,000,000 square feet of facilities in the planning and design stages of development. The Company has designed a proprietary line of cannabis infused products which will be branded and licensed to companies in regulated markets.
AmeriCann, Inc. is a Certified B Corp, an acknowledgment of the company’s commitment to social and environmental ethics, transparency and accountability. AmeriCann became the first public cannabis company to earn this respected accreditation. More information about the Company is available at: www.americann.co.
About Massachusetts Medical Cannabis Center
The Massachusetts Medical Cannabis Center is approved for nearly 1,000,000 square feet of medical cannabis cultivation and processing in Freetown, Massachusetts. The state-of-the-art, sustainable, greenhouse project will consist of multiple planned phases for tenants in the Massachusetts medical marijuana market. AmeriCann’s Cannopy System uniquely combines expertise from traditional horticulture, lean manufacturing, regulatory compliance and cannabis cultivation to create superior facilities and procedures.
The first phase of the project consists of 130,000 sq. ft. of cultivation and processing infrastructure. AmeriCann can expand the first phase to approximately 600,000 sq. ft., based on patient demand.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project,” “prospects,” “outlook,” and similar words or expressions, or future or conditional verbs such as “will,” “should,” “would,” “may,” and “could” are generally forward-looking in nature and not historical facts. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company’s actual results, performance or achievements to be materially different from any anticipated results, performance or achievements. The Company disclaims any intention to, and undertakes no obligation to, revise any forward-looking statements, whether as a result of new information, a future event, or otherwise. For additional uncertainties that could impact the Company’s forward-looking statements, please see the Company’s Annual Report on Form 10-K for the year ended September 30, 2015, which the Company has filed with the SEC and which may be viewed at http://www.sec.gov.
Contact Information:
Corporate:
AmeriCann, Inc.
3200 Brighton Blvd. Unit 114
Denver, CO 80216
(303) 862-9000
info@americann.co
Investors:
Hayden IR
hart@haydenir.com
(917) 658-7878
Source: AmeriCann, Inc.
