Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

Subsequent Events
3 Months Ended
Mar. 31, 2019
Subsequent Events [Abstract]  
Subsequent Events



Debentures Payable Conversion


In April 2019, the Holder of the $10M Debentures converted $500,000 of principal and approximately $70,000 of accrued interest into 211,015 shares of common stock at conversion prices of $2.67 and $2.74 per share.


Debt Issuance


In May 2019, the Company sold an additional $5,000,000 of convertible debentures bearing interest at the rate of 6% per annum that mature two years from issuance, with a 1% issue discount, resulting in net proceeds to the Company of $4,950,000 (the “$5M Debentures”).


The $5M Debentures were sold to the Holder of the $10M Debentures. The terms of the $5M Debentures are consistent with the terms of the $10M Debentures as described in Note 12 – Debentures Payable, with small variations, most notably a cap on the conversion price. The Company also issued three-year warrants to the Holder to purchase 400,000 shares of common stock at an exercise price of $4.00 per share.


Seed Inventory Purchases


In April 2019, Mari-Hemp purchased an additional $3.5 million of industrial hemp seeds for wholesale hemp distribution and hemp-derived CBD product development.