General Cannabis Corp (OTCMKTS:CANN) lost 3.12% in yesterday’s trading session to close at $2.17 on the back of the company announcing that they are investing $375,000 in Puerto Rico’s Consolidated C.R, LLC Company.
The investment is a convertible promissory note with a 12% interest rate , and all Consolidated C.R.’s assets will collateralize the loan for 18 months. General cannabis has an option of converting its principal of 250,000 under the note to 10% equity ownership of Consolidated.
The CEO and chairman of General Cannabis, Michael Feinsod, indicated that the investment in Consolidated C.R. demonstrates the continued expansion of the company’s finance division as well as its commitment to support the success of entrepreneurs in the regulated cannabis market. Consolidated is an integrated cannabis company, and its management comprises of experts in the cannabis industry. Similarly, the company has business executives and attorneys with vast knowledge and passion for cannabis in the much-regulated industry.
The CEO added that with the experienced management team of Consolidated C.R. that has worked in Oregon, Nevada and Colorado the company is optimistic that the potential partnership will help them grow their Puerto Rican market. The company has already established a strong foundation and in Puerto Rico with local network and connections in the island which will be vital for General Cannabis to launch as well as operate medical cannabis business in Puerto Rico.
Growing cannabis market in Puerto Rico
The department of economic Development in Puerto Rico estimates that cannabis-related revenue in the island could exceed $100 million by the end of the year with the number of medical Marijuana patients getting well over 60,000. However other experts have indicated that by 2021 cannabis related revenue could be approximately $1 billion.
Consolidated C.R. will use the investment for the construction of its cultivation, manufacturing and dispensing facility with additional funds being put in operating and start-up expenses. Zach Waldman, Consolidated C.R. CEO, said that they had known General cannabis for long and they were eager to use the investment in building a cannabis facility in the underserved Puerto Rico market.