Medical Marijuana has signed closing documentation for a USD2m line of credit with Lotus Capital, a Chicago based private equity firm.
The line of credit will be used as a reserve fund for product expansion of the Dixie X line of Cannabidoil (CBD) based products as well as to support the national marketing campaign of the Dixie X and CanChew gum product launch, scheduled for early September.
The line of credit will also be available to support future expansion through company acquisitions.
This new revolving line of credit will be secured against shares of the company’s capital stock. MJNA is in the process of providing a new S-1 registration statement for the issuance of the shares.
Additional terms of the line of credit allow MJNA to cancel the line at any time, releasing the security interest in the shares back to the company. This transaction is non-dilutive to the shareholders providing that the company repays any drawdown against the line of credit per the terms of the agreement.
