Arizona firm 1606 raises $20 million for hemp and CBD acquisitions

Did you miss the webinar “Women Leaders in Cannabis: Shattering the Grass Ceiling?” Head to MJBiz YouTube to watch it now!

Phoenix-based hemp and CBD retail and distribution company 1606 Corp. raised up to $20 million through an equity financing agreement with GHS Investments.

According to a news release, 1606 will use the funds for acquisitions.

“This $20 million financing is going to allow us to buy profitable CBD companies and we’ll be a great investment opportunity for investors around the world,” 1606 CEO and Chair Greg Lambrecht said in a statement.

GHS Investments is buying equity in 1606 at 80% of the market price.

After 1606 uplists from the over-the-counter markets – where it trades as CBDW – to a larger exchange such as the Nasdaq, the purchase price will increase to 90% of the market price, subject to a $2-per-share floor.

Below that, the company will not deliver any put options.