Marijuana Company of America Inc. signs $10 Million Equity Line with White Lion Capital, LLC
- MCOA is excited to announce the signing of a definitive equity line of credit agreement with White Lion Capital, LLC for $10 million, which will facilitate the restructure of the Company's capital structure and significantly help the Company's cash flow position to expand operations and M&A activity.
- White Lion Capital, LLC invests in high growth early-stage public companies that seek to become industry leaders in trending sectors and become long-term financial partners.
- Jesus Quintero, CEO of MCOA and Roberts Hymers, strategic consultant for MCOA, have successfully negotiated the equity credit line with Sam Yaffa, and Dmitriy Slobodskiy, Principals of White Lion Capital, LLC. Messrs. Hymers, Yaffa and Slobodskiy are California State University, Northridge (CSUN) alumni. CSUN alumni are pioneers in the cannabis space.
- The new Equity Credit Line will facilitate MCOA's Strategic Plan to expand into new markets, add new hempSMART product lines and deploy its new marketing strategies.
- The Equity Credit Line financing will assist MCOA in retiring legacy convertible debt notes with less dilutive equity line financing, which will strengthen the Company's balance sheet significantly.
ESCONDIDO, Calif., June 24, 2020 /PRNewswire/ -- Marijuana Company of America, Inc. (OTCQB: MCOA) ("MCOA" or the "Company"), an innovative hemp and cannabis corporation, announces that MCOA and White Lion Capital, LLC have signed an agreement for a $10,000,000 (ten million US dollars) equity line of credit. White Lion Capital, LLC is a millennial run equity fund, based out of Los Angeles that makes investments into growing public companies.
hempSMART will begin manufacturing new hempSMART product lines: Pure line, Luxe line and the SMART line according to the Company's Marketing and Distribution strategies. HempSmart Global (HS Global) will unveil new products for the SMART line directed at young consumers who are active, and knowledgeable about high quality CBD to enhance their lifestyle and well being. In addition, HS Global will introduce its Luxe beauty Line that includes high quality CBD skincare products for both men and women. hempSMART Global's new retail / wholesale website is currently under construction and will be ready to launch when the new products arrive to our fulfillment center.
"We are very excited to acquire this new equity credit line as this will facilitate our efforts to execute our marketing strategies and Company projects. We have been working diligently to get all the pieces in place so that our roll-out will be smooth and unified," states Gloria Albarran Lynch, Chief Marketing Officer. "Our new product lines are positioned to engage a vast audience, both domestically and internationally. With the strength of the CBD wellness and beauty industry that is expected to grow beyond $25 billion globally in the next decade, we intend to take full advantage of this tremendous opportunity and take a leading position in this market."
The Company is in the process of filing an S-1 Registration statement with the Securities and Exchange Commission in order for the equity line with White Lion to become effective. The Company expects that this filing will be completed early in the third quarter of 2020.
Jesus Quintero, CEO of MCOA states "we look forward to a great partnership with White Lion Capital as their assistance will propel MCOA to the level of success we are working towards, as we steer away from traditional convertible notes and shift more to an "investor" equity based participation model."
Robert Hymers, Strategic Consultant and MCOA's Co-Founder stated, "I have been working with White Lion for over a year to position them to get involved with MCOA and several other substantial micro-cap cannabis companies. It is rewarding to see young entrepreneurs from my alma matter (Cal State, Northridge) ambitiously following in my footsteps to pave the way for investing a substantial amount of capital in the cannabis sector. It's a testament to CSUN's high caliber business department and academic focus on promoting an emphasis on equipping entrepreneurs with functional knowledge that is helping them to become key players in the public company landscape."
About Marijuana Company of America Inc.
MCOA is a corporation that participates in: (1) product research and development of legal hemp-based consumer products under the brand name hempSMART™, which targets general health and well-being; (2) an affiliate marketing and retail sales program to promote and sell its legal hemp-based consumer products containing CBD; (3) joint ventures and acquisitions of business entities engaged in the growth and sale of hemp and cannabis products in jurisdictions where cultivation is legal; and (4) the expansion of its business into ancillary areas as market opportunities in this segment mature and develop.
Legal Status of Cannabis
While legalized in California for recreational and medicinal use, cannabis remains a Schedule 1 drug under the Controlled Substances Act (21 U.S.C. § 811) and illegal under federal law.
This news release contains "forward-looking statements," which are not purely historical and may include any statements regarding beliefs, plans, expectations, or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs, and results of new business opportunities and words such as "anticipate," "seek," "intend," "believe," "estimate," "expect," "project," "plan," or similar phrases may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future U.S. and global economies, the impact of competition, and the Company's reliance on existing regulations regarding the use and development of cannabis-based products. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations, and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations, or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K, our quarterly reports on Form 10-Q, and other periodic reports filed from time to time with the Securities and Exchange Commission.
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SOURCE Marijuana Company of America, Inc.
Released June 24, 2020