DENVER, CO -- (Marketwired) -- 03/12/15 -- General Cannabis Corporation ("General Cannabis") (OTC: CANN) today announced that it is acquiring Iron Protection Group. General Cannabis will acquire substantially all of IPG's operating assets. The transaction is expected to close no later than March 26, 2015.
Iron Protection Group provides security and training services to private companies, government agencies, diplomats, dignitaries and non-profit organizations. IPG's largest current line of business is providing armed security guards to licensed cannabis retailers and cultivators in Colorado.
The purchase price consists of the issuance of 500,000 shares of CANN common stock. In addition, General Cannabis will issue 250,000 warrants to purchase common stock at $4.50 and 250,000 warrants to purchase common stock at $5.00 per share. The transaction is expected to add more than $1.5 million in annual revenue and be accretive to future earnings per share.
Robert Frichtel, CEO of General Cannabis, stated, "We are very happy to add security to the services we provide to the cannabis industry. The Iron Protection Group team has established itself as a proven leader, and we believe is positioned to expand its customer base and service offerings.
"Because banking availability and electronic payments have yet to catch up to the changes in the legal status of cannabis, the industry tends to operate with a relatively large amount of cash. In addition, growing facilities have unique security requirements. These factors create significant demand for professional security services for the cannabis industry.
"Iron Protection Group will provide personnel to licensed operators in Colorado. Our clients can be assured that IPG personnel have appropriate training and experience, nearly all of them has been trained by the US military and has served our country with honor. Upon joining IPG, employees receive additional training specific to the needs of the cannabis industry. They then work to provide client-specific solutions intended to provide the highest level of security."
Hunter Garth, CEO of IPG, said, "We are very happy to be joining General Cannabis at this very exciting time in their business development. We believe that our talents and training will make their clients' businesses more secure, and by doing so, make them more profitable as they will be more welcoming to the retail customer.
"In addition to protective services, IPG also trains clients in both accelerated threat management and decisive threat management. Our curriculum includes basic pistol techniques, advanced manipulation of the AR platform rifles and even basic life-saving techniques. Our courses can be personalized to help you improve your overall tactical needs."
Michael Feinsod, Chairman of General Cannabis, added, "We believe IPG gives General Cannabis immediate scale and presence in the Colorado cannabis market. With over 65 employees in the field on each day, the acquisition provides a strong platform to expand our service offerings. We plan to pursue other synergistic acquisitions and expansions into businesses that service the cannabis industry."
About Iron Protection Group
Iron Protection Group provides security and training services to government agencies, multinational corporations, diplomats, dignitaries and non-profit organizations, both domestic and abroad. IPG encompasses all things related to protection, from training individuals in the art of manipulating a firearm, all the way to providing a personal security detail for any security need.
About General Cannabis Corporation
General Cannabis Corporation provides services to the regulated cannabis industry throughout the United States. We lease growing space and related facilities (commercial real estate and equipment) to licensed cannabis business operators for their production needs.
We are pursuing ancillary business products and services including customized finance, capital formation, banking, regulatory compliance consulting, security and advanced logistical support for grow operations.
General Cannabis does not grow, harvest, distribute or sell cannabis or any substances regulated under United States law such as the Controlled Substances Act.
As previously announced, Advanced Cannabis Solutions, Inc. intends to seek shareholder approval to change its name to General Cannabis Corporation. The Company expects to effect the name change this spring in connection with its annual shareholders' meeting.
Forward Looking Statements
Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including the risks identified in the Company's filings with the Securities and Exchange Commission (the "SEC"), including but not limited to Risk Factors contained therein. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.
General Cannabis Corporation
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