CannLabs, Inc. announced that it expects to receive $1.25 million in funding
June 10, 2014
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Cannlabs Inc. (OTCQB:SDSP) announced a private placement of 500,000 shares of 8% series A convertible preferred stock at $1 per share for $500,000 and senior secured convertible promissory notes for up to $750,000 for gross proceeds of $1,250,000 with new accredited investor, SB Dallas Investments I, LP on June 11, 2014. The preferred stock will be subscribed by the investor pursuant to a securities purchase agreement and notes will be subscribed by the investor pursuant to a note purchase agreement. The company will also issue warrants to subscribe to 20,000,000 common shares of the company. Each share of series A preferred stock will have a par value of $0.001 per share. The preferred stock will be issued on premium and will carry an annual 8% per share cumulative dividend. Dividends will be payable quarterly in shares of the company. The preferred stock will be convertible into common shares of the company at any time at a conversion price of $0.01664 per share. Each holder of series A preferred stock shall not have the right to convert any portion of the series A preferred stock. The maximum percentage of stake, each holder of series A preferred stock can beneficially own after conversion of preferred stock is 4.99%. The note will be issued in a series of three closings to occur on August 15, 2014, September 15, 2014, and October 15, 2014. The notes will mature two years from their respective issuance dates and bear interest at the rate of 8% per annum. The exercise price of warrants will be $0.15 per share and will expire on the fifth anniversary of the initial exercise date of the warrants. The company will serve as warrant agent. The company will issue securities pursuant to exemption provided under Regulation D. No brokerage or finder's fees or commissions are or will be payable by the company with respect to the transaction. The company shall pay all transfer agent fees, stamp taxes and other taxes and duties levied in connection with the delivery of any securities to the purchasers. The closing of the transaction is conditional to closing of reverse merger with Carbon Bond Holdings, Inc.
On the same day, the company announced that it has issued series A convertible preferred stock and warrants in the first tranche of the transaction.
On July 28, 2014, the company announced that it has received $250,000 in the second tranche close by the issuance of a promissory note.
As of September 30, 2014, the company announced that it has received $500,000 through the issuance of promissory notes. The company has received $1,000,000 in the transaction.
CannLabs, Inc. is a diversified holding company. The Company is a provider of cannabis and hemp/cannabidiol (CBD) laboratory testing services in Texas. The Company, through its subsidiary, Transcend Growth Ventures, helps enable and optimize operations to develop workflows, implement software and establish procedures for cannabis businesses. Through Noble Realm Games, it is engaged in the gaming and entertainment business. Through Color Blind USA, Inc., the Company is engaged in four sectors, such as manufacturing, apparel, music and video game design. Through U-World Global Technology Inc., the Company has access to a fleet of vessels and can charter vessels for virtually any type and size of bulk oil voyage. The Company, through Crionx LLC., provides professional engineering and technical management services focused on technology-enabled business solutions. The Company, through Black Eyed Distilling Co., is engaged in the distillery business.