TREES Corporation (CANN)

[Alan Brochstein]

What kind of b.s. financing did these jokers just do? My gosh, they sure look desperate:

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11567129

On August 15, 2016, General Cannabis Corp. (the “Company”) obtained two loans in an aggregate amount of $50,000 (the “Loans”), $25,000 each, from AFB2, LLC (“AFB2”) and Belle Harbor Capital, LLC (“Belle Harbor”), collectively the “Lenders”. In exchange for the Loans, the Company issued each of the Lenders a demand promissory note (the “Promissory Note”), each in an amount of $25,000 with an interest rate of eight percent (8%) per year on the unpaid balance, which shall be due and payable in full on demand of the Lenders. AFB2 is controlled by Peter Bookvar who is a director of the Company. The Company required the proceeds for working capital.

In connection with the Loans, the Company issued warrants to purchase fifty thousand (50,000) shares of common stock of the Company (the “Warrants”) to each of the Lenders as additional consideration for the Loans. Subject to the terms and conditions set forth in the warrant contracts, each holder of the Warrants may purchase shares of common stock of the Company at a price of seventy-eight cents ($0.78) per share before the expiration date of the Warrants.

Holy penny stock crap! The debt protects the downside fully (and is payable on demand - wtf!), and the warrants offer 156% of the upside on the common stock. This company sure is hard-up for cash apparently.