ChineseInvestors.COM Inc. placed 5 million shares of its Series C-2016 convertible preferred stock.
The company sold the stock for $1 per share, receiving $5 million in invested capital. The private placement was completed Jan. 21.
Each preferred share is convertible into three common shares upon the shareholder's request, and each preferred share pays a guaranteed dividend of 6% in the first year after issuance. The company said it would pay $300,000 in dividends over the next 12 months.
The company plans to use a part of the proceeds to invest in cannabidiol, or CBD, retail operations and development and to pursue regulatory approval for specific cannabidiol health applications in mainland China, though doing so will require it to establish a wholly owned foreign entity to access the market, the company said.
ChineseInvestors.COM is also pursuing investments in early-stage public companies in the legal cannabis industry in Colorado and California.