GNCC Capital Inc (OTCMKTS: GNCP), a leading seller of cannabis CBD pharma-grade oil, is negotiating a couple of options to acquire Lithium Lode Claims.
Will GNCC able to fund the transaction?: The acquisition of Lithium Lode Claims primarily depends on the company’s ability to fund the transaction. The total consideration of both the transactions works out to be $2,500,000, payable in a phased manner over a pre-decided period, inclusive of current ongoing costs. The company has to fund this transaction through cash only. No other payment mode will be accepted. If they cannot secure financing, GNCC ceases the options, and optioners can amend the payments terms and conditions.
As per the company, its largest shareholder, Premier Development, should have enough cash to fund the above transaction. It is also believed that GNCC has provided Premier Development a significant incentive to support the company for the acquisition of the assets.
Completed all financial reporting: GNCC Capital has completed all its financial reporting and gained back its PINK CURRENT position on the OTC Markets. This indicates that the company can now raise cash, which is vital for running the business operations. However, on the going concern basis, the company has to file their forthcoming quarterly results and the annual report within the prescribed time stated by the regulator. If the company fails to do so, they will cease their listing (means no longer be quoted on OTC Market).
As per the company press release, it is indicated that in the various forum, shareholders have demanded the company to sell certain Mining exploration interests and use the proceeds to pay the dividend. However, management indicated that to increase the shareholders’ value, the company needs to actively invest the funds in these assets, improve operations, and make shareholders understand how vital these assets are.