First Colombia Development Corp. Closes Oversubscribed Financing for Gross Proceeds of US $7.7 Million
SAUSALITO, Calif., August 6, 2019 (Newswire.com) - First Colombia Development Corp. (“First Colombia” or the “Company”) (OTC: FCOL) today announced the closing of its previously announced non-brokered private placement offering. The Company initially offered up to US $7 million in shares of common stock at a purchase price of US $0.50 per share, exclusively to accredited investors pursuant to exemptions from registration under the Securities Act of 1933. Due to strong demand, the offering was increased to US $8 million, and pursuant to the closing of the offering on August 5, First Colombia issued and sold nearly 7.4 million subscription receipts at the offering price of $0.50 for gross proceeds of approximately US $7.7 million.
Included in the total proceeds is the conversion of approximately $600,000 of debt related to First Colombia’s previous release announcing the intended acquisition of Critical Mass Industries LLC DBA Good Meds ("Good Meds"), which is expected to close later this week. Good Meds noteholders agreed to convert that debt to common stock as part of this private placement.
“We are very pleased with the success of this early financing round and the strong interest in and support of First Colombia,” stated Chris Hansen, CEO and president of First Colombia. “Not only did we exceed our initial financing goal, but our resulting group of nearly 250 private and institutional investors represent 29 countries. We believe this reflects the increasingly connected global nature of the cannabis market, which bodes well for the Company’s future development and success and the continued vigorous expansion of the industry. We appreciate these investors’ excitement about this market, as well as their confidence in our Company and its leadership.”
Blair Mullin, First Colombia’s CFO, noted, “The Company is now well-financed going into the second half of 2019. As we continue to advance our business strategy, we are on the verge of completing an important acquisition, intend to establish our permanent physical headquarters and develop our online presence soon and are looking into a variety of potential future projects.”
CEO Chris Hansen added, “We expect to release detailed news about the Good Meds acquisition and further corporate advances within the next few weeks, and we look forward to keeping our investors and the public abreast of these developments.”
This press release is not an offer of securities or a solicitation for purchase, subscription or sale of securities in the United States of America or in any other jurisdiction in which it would be unlawful to do so.
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Source: First Colombia Development Corp.