General Cannabis Corp. Announces Multi-Million Dollar Strategic Equity Investment

Investment by Hershey Strategic Capital LP and Shore Ventures III, LP will significantly strengthen balance sheet and enable the Company to leverage its position as one of the only publicly traded companies approved to acquire licensed cannabis assets

DENVER, June 01, 2020 (GLOBE NEWSWIRE) -- General Cannabis Corp. (OTCQX: CANN), the leading publicly traded Colorado cannabis company, announced today that it has reached an agreement that will bring up to $3 million in strategic growth capital to the company.  The investment will be funded by Hershey Strategic Capital LP and Shore Ventures III, LP, entities led by managing member Adam Hershey.

The investment is another important step in General Cannabis’ Colorado-based expansion strategy.  Over the last two months, General Cannabis became only the second publicly traded cannabis company approved by the State of Colorado’s Marijuana Enforcement Division (the “MED”) to acquire licensed cultivation, manufacturing and retail cannabis operations throughout the state of Colorado.  Shortly thereafter, the company closed its acquisition of Boulder, Colorado-based SevenFive Farm, a 17,000 square feet light deprivation greenhouse.  Last week, General Cannabis was conditionally approved by the MED, subject to local approval, to close its next planned acquisition—Pueblo, Colorado-based Cannasseur, a vertically integrated company that commenced operations in 2013 and operates a recreational retail dispensary, a 12,000 square foot light deprivation greenhouse and a manufacturing facility that produces Dabtek, a product line of infused concentrates.  General Cannabis’ Next Big Crop division continues to operate as an industry leader in the application, design, buildout and operation of cultivation facilities, having worked with over 100 cultivation facilities across the country.

Steve Gutterman, CEO of General Cannabis, said: “This significant capital infusion is a powerful statement about our team, our strategy, the market opportunity and our ability to build shareholder value. We are excited to work with Adam Hershey to leverage the extraordinary market opportunity and competitive advantage offered by MED approval and build on the foundation of our SevenFive Farm acquisition and our planned closing of our Cannasseur agreement. Even in the midst of the tremendous headwinds facing our country and the economy, we believe we are as well-positioned as any company in the space to succeed, and this investment is a further demonstration of that. I want to acknowledge the extraordinary group of executives and professionals in our company, including everyone in our NBC division, our finance, accounting and M&A teams and our new colleagues at SevenFive Farm, whose hard work and focus have put General Cannabis in this position to succeed.”