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GNCC shareholders demand disposal of mining assets, reconstitution of board

GNCC Capital Inc., facing shareholder demands to focus on either the cannabis or mining exploration business, said it is negotiating with investors over the disposal of mining exploration assets and the cancellation of certain preferred securities.

The sale of the mining assets and cancellation of series A and series C convertible preferred shares will total $25.5 million, the Las Vegas-based company noted.

Among other issues, the negotiations also cover eliminating all dividends on all classes of preferred stock along with all long term liabilities, which totaled $6.3 million in the third quarter. The shareholders also want changes in the company's board so that only people with significant experience and expertise in the cannabis industry become executive directors.

Additionally, the company is aiming to not issue any classes of preferred stock, to clarify the acquisition of BioCann Pharma SAS. and to either consummate or abandon all pending cannabis industry-related transactions.

GNCC's directors have until Aug. 23 to comply with the requested changes. Some of the preferred shareholders will be in a position to ratify all actions by voting in excess of 51% of all outstanding common shares, the company noted in its Aug. 21 release.

GNCC Executive Chairman R.Y. Lowenthal said he will resign from the company's board upon the appointment of both the nonexecutive chairman and CEO or president.