- $1.3 Million Hybrid Equity Investment through Private Placement
- Amplifies Ability to Drive Expansion in Medical Cannabis Sector
- Strengthens Balance Sheet, Enriches Access to Capital, and Positions Compassionate Certification Centers for Long-Term Success
PITTSBURGH, June 21, 2018 (GLOBE NEWSWIRE) -- Compassionate Certification Centers (“CCC”), Pennsylvania’s largest independent physician cannabis health care organization, today announced that Battalion Consol Corp. (“Battalion”), has entered into a definitive agreement to invest $1.3 million into CCC through a direct private placement of hybrid equity securities. The investment will carry an interest rate of 14% per annum, will include warrants, and a 2.9% gross revenue royalty.
“This capital injection will allow Compassionate Certification Centers to leverage its first mover advantage and crystalize a dominate position in the Pennsylvania market,” said John Paul Jeffrey, Managing Director, Battalion. “We have already identified several strategic partnership opportunities between CCC and our portfolio companies and partners that will immediately and dramatically accelerate growth, revenue, and margins.”
"Our partnership with Battalion Consol will allow us to expand our outstanding patient certification and care programs. We could not be more pleased," said Melonie Kotchey, COO of Compassionate Certification Centers. “Beyond funding, their industry reach and connections have opened several opportunities for us to expand offerings and optimize operations.”
Currently, 35,000 patients are registered for Pennsylvania’s medical cannabis program, with an estimated 200,000 patients who qualify. The fifth-largest state in the country, Pennsylvania dispensary sales have the potential to exceed $100 million annually in the next few years.
Compassionate Certification Centers specializes in medical cannabis certification with locations throughout Pennsylvania. Its diverse list of physicians have backgrounds in: pain management, oncology, neurology, pediatrics, gastroenterology, immunology, primary care, rehabilitation, emergency medicine, and more.
Battalion will purchase 13,000 $100USD Face Value Perpetual Preferred Securities bearing an interest rate of 14%.
In consideration of this investment, CCC will issue Battalion five-year warrants to acquire 100,000 common shares at an exercise price of $10 per share (representing 10% of the issued and outstanding shares of the corporation), and a 2.9% gross royalty in perpetuity. Upon the full exercise of the warrants, Battalion's total investment in CCC will increase to $2.3 million.
The definitive agreement provides for customary closing conditions.
About Compassionate Certification Centers®
Compassionate Certification Centers is a unique company devoted to assisting U.S. citizens who desire access to medical marijuana in a way that respects the laws and guidelines of each state law. Our approach involves convenient cannabis treatment center locations, provides nursing CBD/THC consultation and care, and proof of compliance for the respective Department of Health or Pharmacy depending on the state.
About Battalion Consol Corp.
BATTALION CONSOL CORP. is a private equity investment firm and strategic partner of Cannabis Growth Opportunity Corp. (CSE:CGOC) with diversified operations in Canada and abroad. Headquartered in Toronto, the company invests in Private Equity, Corporate Debt Restructuring, Private Investment in Public Equity, as well as Technology Development & Licencing.
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