1606 Corp announced it had struck an equity financing agreement with GHS Investments LLC that sees it net up to $20 million to hunt for new CBD brands.
The acquisition-based CBD + Hemp retail product distribution company said in a statement it is “pleased” with the terms of the deal.
According to 1606, the purchase price of all equity by GHS will be 80% of the market price. Following an up-list to the NASDAQ or an equivalent national exchange, the purchase price of equity related to this registration will be purchased at 90% of the market price, subject to a floor of $2 per share.
1606 told investors that it plans to use the funds to acquire and develop additional CBD brands, distribution networks, and businesses.
By building the portfolio of CBD businesses through acquisitions, 1606 aims to add shareholder value by utilizing this equity line of credit, it added.
"We're moving fast. Now that we have our feet underneath us since receiving the ticker symbol CBDW and now we're taking definitive steps toward adding shareholder value,” 1606 CEO Greg Lambrecht said in a statement.
“This $20 million-dollar financing is going to allow us to buy profitable CBD companies and we'll be a great investment opportunity for investors around the world."
A spinoff of SinglePoint Inc (OTC:SING), 1606 Corp acquires and develops CBD brands including Truz and CBD Singlez.
Contact Angela at angela@proactiveinvestors.com
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