Canl cannabis reverse merger CannLabs, Inc.

Uploaded on

CannLabs, Inc. -- CANL -- Reverse merger of leading cannabis lab into a public company. Reverse merger expert John Lux discusses the deal structure.

CannLabs, Inc. -- CANL -- Reverse merger of leading cannabis lab into a public company. Reverse merger expert John Lux discusses the deal structure.

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads


Total Views
On Slideshare
From Embeds
Number of Embeds



Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

    No notes for slide


  • 1. www.reverse-merger-shell CANL Cannabis Reverse Merger
  • 2. Disclaimer  This is not legal or investment advice of any kind  Seek competent advice from qualified attorneys and investment bankers  Your situation may vary  The more you know about finance and business, the more you can profit
  • 3. On Friday the 13th CannLabs, Inc. announced its reverse merger with SpeedSport Branding
  • 4. CannLabs trades on the Over The Counter Bulletin Board (OTCQB) under symbol SDSPD until July 10, 2014, when the symbol will be symbol CANL on the OTCQB
  • 5. Carbon Bond Holdings, Inc., a leading cannabis testing lab, became a wholly owned subsidiary of CannLabs
  • 6. CannLabs sold 500,000 shares of Series A Convertible Preferred Stock for $500,000 and issued five year warrants to purchase 20,000,000 shares of common stock at $0.15
  • 7. The investor agreed to lend $750,000 in additional funding in three tranches through November 15, 2014
  • 8. CannLabs agreed to file an SEC registration statements covering the resale of the common stock underlying the Series A Convertible Preferred Stock and the warrants
  • 9. CannLabs acquired Carbon Bond for 59,295,000 shares
  • 10. CannLabs also swapped out SpeedSport Branding for 111,545,535 shares, leaving it with 65,520,000 shares outstanding
  • 11. Of these, 87.8% are held by the new shareholders, 9.5% by the old pre-merger shareholders
  • 12. Another 30,048,077 shares can be issued to the Series A Preferred Stock on conversion at a conversion price of $0.01664, and another 20,000,000 shares on exercise of the warrants at $0.15
  • 13. This compares nicely with the closing price of $1.38. The preferred stock and the warrants limit conversions to 4.99% of the outstanding stock, which can be increased to 9.99%
  • 14. Friday June 13, the stock traded closed at $1.38, up 369%
  • 15. 110,585 shares were traded shows that 82,266 shares of this volume was sold short, or 74.39 %
  • 16. Presumably much of this short was from market makers forced to meet the demand after the news
  • 17. SpeedSport Branding was a development company, a small motorsports organization participating in road racing
  • 18. It showed almost $100,000 in shareholders equity, and a small loss on $22,000 in revenue for the last quarter It was split off in exchange for the cancellation of stock
  • 19. Cannabis is a hot item in the OTC market, so much so that the SEC found it necessary to issue a warning in May
  • 20. Despite this warning, adding the stock from the warrants and the convertible preferred to the outstanding stock and valuing it at $1.38, gives a market cap of $147 million
  • 21. If the investor can convert the preferred into common and sell at $1.38, it turns its $500,000 into $41,446,346
  • 22. Throw in a full conversion of the warrants at $1.38 and you get a $24,600,000 kicker for total proceeds of $66,066,346 on the $500,000 investment
  • 23. The investor breaks even on its $500,000 investment if it converts and sells at less than two cents per share
  • 24. Get my books on How to Pick Hot Reverse Merger Penny Stocks
  • 25. Get the Data You Need Subscribe to my blogs Www. Reverse- Www. Reverse- merger.Info
  • 26. Get Your Questions Answered  Questions – email me at John.Lux@ Securities-  (240) 200-4529
  • 27. Get my books on How to Find a Home Run Stock by John E. Lux