Markets

PIPEs for Smoking Pot (Stocks)

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The smoke furling off of joints in a growing number of states and the federal government’s increasingly laissez faire posture concerning pot’s illegality are juicing momentum for a crop of issuers looking to take advantage of the budding marijuana industry. Despite unease about ex-convicts involved in some companies, the undeniable capacity for rampant fraud, and federal government’s ultimate reaction – under federal law, marijuana use for any purpose is still illegal – publicly traded marijuana issuers have begun to find an audience among investors. Eight companies linked to the marijuana trade have raised $31.6 million in nine equity private placements since the beginning of 2013, according to PlacementTracker, a division of Sagient Research. Over the same period, Seattle-based plant extract supplier Plandai Biotechnology (PLPL) and Irvine, Calif.-based indoor agriculture equipment supplier Terra Tech Corp. (TRTC) agreed to equity lines with potential drawdowns of $15.3 million and $5 million, respectively.

Deals

uSell.com Raises $1.5M at 28% Discount

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uSell.com Inc. (USELD) announced that it has raised $1,500,000 in a Common Stock transaction. The common stock was sold at $3.00 per share, an approximate 28% discount to the market price ($4.15) of USELD at deal announcement. The transaction is expected to close by 02/12/2014. via PlacementTracker.

Deals

Advanced Cannabis Solutions Raises $7.5M at 73% Discount in Conv Notes Deal

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Advanced Cannabis Solutions, Inc. (CANN) announced that it has raised $7,500,000 in a Convertible Senior Secured Notes transaction. The fixed conversion price of the Convertible Senior Secured Notes is $5.00 per share, an approximate 72.83% discount to the market price ($18.40) of CANN at deal announcement. A series of 1,000,000 36-Month Warrants with an exercise price of $5.50 per share (70.11% discount) was issued to the investors in this transaction. The investor was Full Circle Capital Corporation. via PlacementTracker.

Deals

Victory Electronic Cigarettes Corp. Raises $10M in Conv Notes Deal at 67% Discount

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Victory Electronic Cigarettes Corporation (ECIG) announced that it has raised $9,825,000 in a Convertible Promissory Notes transaction. The fixed conversion price of the Convertible Promissory Notes is $5.00 per share, an approximate 66.67% discount to the market price ($15.00) of ECIG at deal announcement. A series of 1,965,000 60-Month Warrants with an exercise price of $5.00 per share (66.67% discount) was issued to the investors in this transaction. Issuer counsel was Robinson Brog Leinwand Greene Genovese & Gluck P.C. The transaction closed on January 14, 2014. via PlacementTracker.