Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

Subsequent Events
6 Months Ended
Jun. 30, 2019
Subsequent Events [Abstract]  
Subsequent Events



Seed Transactions


In July 2019, the Company delivered and billed GenCanna an additional $8.0 million for hemp seeds that were purchased by the Company for approximately $5.0 million. The seeds are to be harvested in the fall of 2019, and accordingly, the Company provided GenCanna with extended payment terms, with the full payment to be made in December 2019 after the crop is harvested. The accounting treatment of these sales were consistent with that of the original seed sale transactions as previously disclosed in Note – 1 Organization and Description of Business.


Licensing Agreement


In July 2019, as previously disclosed in Note 4 – Investments, the Company entered into a licensing agreement for the exclusive manufacturing and distribution in seven eastern states of the Binske® portfolio of products, a brand known for utilizing best-in-class proprietary strains and craft ingredients in its edibles, concentrates, vaporizers, and topicals.


Debentures Payable


In July 2019, the Holder of the $17.5M Debentures converted, in two separate transactions, an aggregate of $2,750,000 of principal and approximately $17,000 of accrued interest into 2,435,144 shares of common stock at conversion prices of $1.08 and $1.70 per share.


Note Receivable


In July 2019, the Company loaned an additional $230,000 to Atalo, pursuant a promissory note to the Company that bears interest at 6% per annum, with principal and interest payable on the earlier of April 3, 2020 or the date on which the Company acquires at least 25% of Atalo’s outstanding capital stock, in which case the principal and interest due shall be credited toward Company’s purchase price for such capital stock.




In July 2019, the Company issued three-year warrants to purchase 125,000 shares of common stock at an exercise price of $1.71 per share. Also during this month, the Company issued options to purchase 100,000 shares of common stock to an employee at an exercise price of $1.34 per share, expiring five years from issuance date.


In July and August, the Company issued an aggregate of 18,820 shares of common stock to two employees.