Marijuana Company Of America (OTCMKTS:MCOA) To Receive $10m For Expansion Following Its Filing of Form S-1 Registration Statement

Marijuana Company of America (OTCMKTS:MCOA) has announced that it has filed an S-1 registration statement form with the United States Securities Exchange. This is a significant move that is aimed at assisting the company to raise adequate capital that is necessary for funding its projects as well as in expanding its 2019 operations.

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The registration statement of the company included a list of the 500 million common shares that will be put up to resale that are issuable to K7J funds, LLC under the stipulation of the December 20, 2018 investment agreement that the company signed with K&J. Terms of the investment agreement authorize the company to offer up to ten million shares of the common stock to K7J within thirty-six months.

The common stock shares that will be sold in the prospectus will be approximately 20.08% of the total amount of shares issued by the company and the outstanding common stock. This is under the presumption that the selling security holder shall completely sell the shares that were offered for sale.

Change of fortunes with the K&J funding

Marijuana company of America CEO, Don Steinberg, indicated that partnering with K&J was a smart move because they understand their business. He said that the funding from the partnership would provide them with adequate funds that they need to expand their hempSMART brand in 2019 to Asia and Europe. The financing will equally enable MCOA to prepare for sustained expansion as a grower and processor in the hemp industry in California and beyond.

MCOA CFO, Jesus Quintero, indicated that they were pleased that they will no longer rely on convertible debt financing whose conversion terms are variably priced which was less profitable for shareholders. The funding will thus demonstrate their market capitalization strength and thus help in building a robust balance sheet as they continue to implement their continued growth plans in the next financial year.

The move is likely to boost investor confidence as the company will start executing its long-term strategy that will hopefully ultimately grow revenue. With the necessary capital in place, MCOA will continue implementing its business strategies and operational initiatives next year.

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