The California private equity firm Kodiak Capital Group has agreed to to invest $2 million in Burn Entertainment Corp, a multimedia entertainment and lifestyle company catering to “legal cannabis” enthusiasts.
New York-based Burn Entertainment, or BurnTV, announced the stock purchase agreement, saying it would use the proceeds to expand its television and music programming as well as boost its distribution network.
In April, Kodiak agreed to buy $1 million of stock from another cannabis-related business, FutureLand Corp., a Colorado company that leases land and equipment to growers of medical and recreational marijuana.
Burn Entertainment trades on the over-the-counter market under the ticker symbol BTVN. The stock hit $2 last August before plunging to less than a penny in January, the last month the stock was traded, according to Marketwatch.
In a news release, Burn Entertainment CEO Jason Santos said the company was planning to file an S-1 registration statement with the Securities and Exchange Commission “in the coming weeks,” a key step to being listed on a national exchange.
Jim Fitzpatrick, a member of Kodiak’s advisory committee, said in the release that the firm was “excited” to add a cannabis media and lifestyle company to its investment holdings.