DALLAS, Dec. 27, 2019 (GLOBE NEWSWIRE) -- Rocky Mo
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Posted On: 12/27/2019 11:19:05 AM
DALLAS, Dec. 27, 2019 (GLOBE NEWSWIRE) -- Rocky Mountain High Brands, Inc. (OTCQB: RMHB), a healthy lifestyle Company specializing in high-quality health and wellness products, announced today it has executed a new Preferred Equity Financing Agreement with GHS Investments, LLC (GHS) on December 20, 2019.
The purpose of the new agreement is to provide the Company with financing that is based on Preferred Stock, versus S-1 registered Common Stock under our outgoing Equity Line of Credit Facility with GHS. The advantage of the new arrangement to the Company is that GHS will be required to convert the Preferred Stock it purchases from the Company to Common Stock and observe a holding period of six months for the investment prior to trading it.
The Company also announced that it has terminated its $15,000,000 Securities Purchase Agreement dated June 27, 2018 (Equity Line of Credit Facility) and will not be filing any additional S-1 Registration Statements under that agreement.
The Company's Board of Directors recently started the process to increase the number of shares of authorized Common Stock from 200,000,000 to 1,000,000,000. The increase in authorized Common Stock is necessary to:
-- Provide Common Stock for potential strategic acquisitions and other
future equity investments
-- Meet the 2.5 to 3.0 times investment Reserve Requirements under our
agreements with GHS
The increase in authorized shares of Common Stock will either be held in reserve under Reserve Requirements for GHS or held for potential strategic acquisitions or other future equity investments. They will not go into RMHB's Common Stock float at this time.
Separate SEC Form 8-K's were filed. To view the filings, please follow the links below:
https://www.sec.gov/Archives/edgar/data/16708...rmhb8k.htm
https://www.sec.gov/Archives/edgar/data/16708...mhb8k2.htm
The purpose of the new agreement is to provide the Company with financing that is based on Preferred Stock, versus S-1 registered Common Stock under our outgoing Equity Line of Credit Facility with GHS. The advantage of the new arrangement to the Company is that GHS will be required to convert the Preferred Stock it purchases from the Company to Common Stock and observe a holding period of six months for the investment prior to trading it.
The Company also announced that it has terminated its $15,000,000 Securities Purchase Agreement dated June 27, 2018 (Equity Line of Credit Facility) and will not be filing any additional S-1 Registration Statements under that agreement.
The Company's Board of Directors recently started the process to increase the number of shares of authorized Common Stock from 200,000,000 to 1,000,000,000. The increase in authorized Common Stock is necessary to:
-- Provide Common Stock for potential strategic acquisitions and other
future equity investments
-- Meet the 2.5 to 3.0 times investment Reserve Requirements under our
agreements with GHS
The increase in authorized shares of Common Stock will either be held in reserve under Reserve Requirements for GHS or held for potential strategic acquisitions or other future equity investments. They will not go into RMHB's Common Stock float at this time.
Separate SEC Form 8-K's were filed. To view the filings, please follow the links below:
https://www.sec.gov/Archives/edgar/data/16708...rmhb8k.htm
https://www.sec.gov/Archives/edgar/data/16708...mhb8k2.htm
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