LAS VEGAS, NV–(Marketwired – May 26, 2015) – CannaVest Corp. (OTCQB: CANV), a leading manufacturer and distributor of hemp, cannabis derivative, and Cannabidiol (CBD) based products, today announced that it has closed a $6,500,000 financing with an institutional investor, which will provide CannaVest with additional working capital as it continues to rapidly expand its customer base and sales channel. As more particularly set forth in CannaVest’s Form 8-K filed with the Securities and Exchange Commission on May 21, 2015, the financing is structured in tranches, where CannaVest will receive four tranches of $500,000 each, and a final two tranches of $2.25 million upon the effectiveness of its registration statement to be filed with the SEC seeking to register the shares issuable under the financing.
CannaVest’s Chairman and Chief Executive Officer, Michael Mona, Jr., stated, “We very carefully selected our partner in this financing, and after talking with multiple investors interested in our company, we selected the investor willing to invest in our company’s fundamentals and bet on the future success of our operations. We believe the terms of the financing reflect this, by allowing us to confidently predict and control the number of shares issuable to the investor. Unlike many investors in small cap companies, our investor was willing to negotiate and agree on terms that will support our efforts to provide value to our stockholders.”
In addition to securing additional working capital through the financing, CannaVest also announces that it has successfully renegotiated its financial commitments to its leading supplier of raw material in Europe. “Maintaining our dominant supply chain position and the strong relationships with our suppliers is a key differentiating value component of our company,” stated Joseph Dowling, Chief Financial Officer of CannaVest. “We are fortunate that our leading supplier recognized that limiting our financial outlay in 2015 for securing new product would greatly enhance the long term strength of our company. By restructuring our 2015 commitment to our supplier, we are now able to dedicate our resources toward continuing to build our sales channel,” continued Mr. Dowling.
About CannaVest Corp.
CannaVest Corp. (CANV) is a leader in the procurement and wholesale of the hemp plant extract cannabidiol (CBD), and the development, marketing and sale of end consumer products containing CBD, which is refined into its own PlusCBD Oil™ brand. CannaVest resells raw industrial hemp product to third parties, acquired through supply relationships in Europe. CannaVest has primary offices and facilities in Las Vegas, Nevada and San Diego, California. Additional information is available from OTCMarkets.com or by visiting www.cannavest.com.
CannaVest Corp.’s subsidiaries include CannaVest Laboratories, LLC, which facilitates leading research and develops nutraceutical and food products, containing cannabidiol (CBD) oil, and is the developer and manufacturer of CannaVest’s own award winning CBD Simple™, and US Hemp Oil, LLC, which provides seed procurement, cultivation, processing, and production consultation, and equipment to support U.S. farmers, researchers and businesses to cultivate and process industrial hemp in the U.S.
This press release may contain certain forward-looking statements and information, as defined 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, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of CannaVest Corp. to be materially different from the statements made herein.
CannaVest Corp. does not sell or distribute any products that are in violation of the United States Controlled Substances Act (US.CSA). The company does grow, sell and distribute hemp-based products and are involved with the federally legal distribution of medical marijuana-based products within certain international markets.