CEO Paul Rosen Out as PharmaCan Capital Raises Funds

PharmaCan Capital

Co-founder, President and CEO Paul Rosen has resigned from PharmaCan Capital (TSXV:MJN). Rosen, a pioneer in the Canadian cannabis industry, created a merchant bank to invest in the industry in 2013 that was extremely successful early on in terms of identifying successful MMPR applicants, including Whistler, Peace Naturals and wholly-owned In The Zone Produce. It has also made investments in ABcann and Hydropothecary as well as other potential LPs. The company has recently struggled with the disposition of its stake in Peace Naturals.

New CEO Michael Gorenstein had joined the Board of Directors in November. He is a partner at Alphabet Ventures LLC in New York City and was previously General Counsel of Saiers Capital and a an M&A attorney with Sullivan & Cromwell.

PharmaCan Capital announced a capital raise last week and reported today that it has increased the non-brokered private placement offering from $5mm to $6mm, having already raised $2mm by selling units. Each unit, which is being offered at $0.185, consists of a share of stock and a five-year warrant at $0.245. PharmaCan Capital first raised equity at $0.15 per share in early 2013 and had several capital raises at higher levels, including its highest offering, raising $2.55mm at $1.15 per share in August 2014. The offering is priced below the lowest closing price, which was at $0.19 on 3/31.

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Exclusive article by Alan Brochstein, CFA
Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

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