Rocky Mountain High Brands Announces $12 Million Equity Financing Agreement
DALLAS, Oct. 17, 2017 (GLOBE NEWSWIRE) — Rocky Mountain High Brands, Inc. (OTCQB:RMHB), a fully reporting consumer goods company specializing in hemp-infused food and beverage products and a naturally high alkaline spring water, announced today that it closed on a $12 million equity financing agreement through GHS Investments, LLC (“GHS”).
Under the agreement, the Company will file an S-1 Registration Statement with the Securities and Exchange Commission covering the resale of common stock to be purchased by GHS. Once the Registration Statement is approved, the Company will finance its operations through the sale of its stock for up to $12 million, which will be totally at the Company’s discretion. Additionally, it provides the Company the ability to buy back less favorable convertible debt the Company was forced to secure in the last fiscal year because of circumstances described below and allows the Company to have greater control to minimize the dilution of the Company’s stock in the marketplace.
Michael Welch, Chairman, President and Chief Executive Officer, stated, “The Company recently filed its 10-K for the fiscal year ended June 30, 2017, which is the last fiscal year under the former leadership of the Company. Our current management team was led to believe that when the former chairman sold his controlling interest to LSW Holdings, LLC (“LSW”) on February 28, 2017 that LSW was contractually obligated to fund the Company to move forward with the Company’s expansion plans. That funding did not occur. After the former chairman’s departure on June 30, 2017, we obtained an executed copy of his stock purchase agreement and determined that it contained no such requirement. As a result, the Company immediately started pursuing other funding sources through its relationships with investment bankers.”
After considering several options, the Company chose GHS Investments, LLC (GHS), a leading private investment and management group providing financial solutions for small cap enterprises. GHS entered into the agreement with RMHB following extensive due diligence, management interviews, and detailed analysis of the Company. The Company worked with Moody Capital as its investment banker in the transaction.
Michael Welch continued, “We are very grateful for the hard work and persistence of Rob Rosenstein and David Pitt at Moody Capital. Our management team worked closely with GHS, Rob and David to put together a transaction and capital plan that worked for our Company, both now and in the future. It will provide us the capital to execute the critical turnaround strategy for Rocky Mountain High Brands. We will be sharing more specific plans very soon.”
Charles Smith, Board Member, Chief Operating Officer and President of Eagle Spirit Land & Water Company, said, “This has been a long and tedious process for our management team. The following individuals deserve recognition for their contributions to this achievement. Win Morrison, Board Member, undertook a most daunting challenge by initiating the negotiation process that led to settling a long-established law suit which had to be resolved prior to the Company securing financing. The knowledge and insight from David Seeberger, Board Member and Vice President/General Counsel, was invaluable and helped streamline this complex issue. The depth of experience and long work hours from Jens Mielke, CFO, brought us closer to workable solution possibilities. Finally, special thanks go to Michael Welch, Chairman, President and CEO, who kept this company in business. Last year, Michael steered RMHB to a fully reporting SEC Company. This year, he was not only instrumental in settling long-standing litigation, but was able to secure long-term financing for the Company, which is critical to the Company’s future.”
Smith concluded, “Now that this is behind us, we can concentrate on generating sales and building our Company and our shareholder value. I am proud to be associated with a strong, dedicated and talented Board and Management Team and look forward to a successful future for Rocky Mountain High Brands, Inc.”
The Company filed a Form 8-K with the Securities and Exchange Commission on October 16, 2017. The filing can be reviewed at:
About Rocky Mountain High Brands:
ROCKY MOUNTAIN HIGH BRANDS, INC., is a consumer goods company specializing in brand development of health conscious, hemp-infused food and beverage products. The Company currently markets a lineup of four naturally flavored hemp-infused beverages (Citrus Energy, Black Tea, Mango Energy and Lemonade) and a low-calorie Coconut Lime Energy drink. Rocky Mountain High Brands also offers hemp-infused 2oz. Mango Energy Shots and Mixed Berry Energy Shots. The Company also markets a naturally high alkaline spring water, Eagle Spirit Spring Water.
For interested investors, our stock symbol is RMHB.
For ordering information please visit: LiveRockyMountainHigh.com
For corporate information please visit: RockyMountainHighBrands.com
For information on our high alkaline water visit: EagleSpiritWater.com
For Rocky Mountain High Distribution Contact:
Chuck Smith (972) 955-0964
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