Americann Inc (ACAN)

[brandao]

DENVER, CO / ACCESSWIRE / November 8, 2016 / AmeriCann, Inc. (ACAN), a company that plans to develop sustainable, state-of-the-art medical cannabis cultivation properties, has completed a $2,000,000 all equity private placement consisting of common shares and warrants.
AmeriCann led the round with participation by GVC Capital, LLC, a FINRA licensed broker/dealer, AmeriCann's CEO and President, Tim Keogh, and individual accredited investors. The private placement was originally slated for $1,000,000 but due to strong demand the overallotment option was exercised to expand the offering to its maximum of $2,000,000.

The offering consisted of shares of Common Stock and callable Warrants. The total subscribed proceeds were $2,000,000 before deducting commissions and other estimated offering expenses payable by the company. The Warrants would provide proceeds of an additional $6,000,000 to the Company if all Warrants are exercised. The Company completed the offering on November 7th, 2016.

The proceeds from the placement will be utilized for the Company's Massachusetts Medical Cannabis Center (the "MMCC") development, to pursue new opportunities in California, Pennsylvania, Florida and other states, and general corporate purposes.

AmeriCann recently completed the purchase of a 53-acre Massachusetts property from Boston Beer Company (SAM-NYSE) for $4,475,000 cash. The Company plans to develop the property as the Massachusetts Medical Cannabis Center, one of the largest and most technologically advanced cannabis cultivation facilities in the nation. The MMCC is approved for nearly 1,000,000 square feet of medical cannabis cultivation and processing in Freetown, Massachusetts. The state-of-the-art, sustainable, greenhouse project will consist of multiple planned phases for tenants in the Massachusetts medical marijuana market.
The first phase plans for MMCC are based on demand from the existing medical market. AmeriCann will monitor the vote in Massachusetts on adult-use on November 8th and may modify the development schedule accordingly. The Company has plans for an early spring groundbreaking and first cannabis production in fall of 2017.
The legal cannabis industry has experienced dramatic growth in recent years, twenty-five states and the District of Columbia have regulated the use of cannabis. Additionally, nine states with over 30% of the United States population will be voting on November 8th regulating the sale of cannabis for medicinal or recreational use. Most ballot measures favoring cannabis are polling favorably.
"The state [Massachusetts] could become one of the biggest regulated cannabis markets in the country; bigger than Colorado and Washington State," according to Marijuana Business Daily. The Boston Globe recently reported the regulated cannabis market in Massachusetts may exceed $1 billion by 2020.
The respected Wall Street firm of Cowen & Co recently released a research report projecting dramatic growth for the regulated cannabis industry from the current $7 billion nationally to over $50 billion in ten years.