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Nature of Operations, History and Presentation
12 Months Ended
Dec. 31, 2014
Nature of Operations, History and Presentation [Abstract]  
NATURE OF OPERATIONS, HISTORY AND PRESENTATION

1.   NATURE OF OPERATIONS, HISTORY AND PRESENTATION

 

Nature of Operations

 

Advanced Cannabis Solutions, Inc. (“ACS,” the “Company,” “we” or “us”), dba General Cannabis Corporation, was incorporated in the State of Colorado on June 5, 2013 (Inception). ACS provides real estate leasing services to the regulated cannabis industry throughout the United States by purchasing real estate assets and leasing growing space and related facilities to licensed cannabis cultivators and dispensary owners for their operations. In addition, ACS plans to provide a variety of ancillary services to the industry, including wholesale sales of grow mediums and plant nutrient lines, financing solutions including real estate finance, shared workspace, networking and event services, and comprehensive consulting services to current and future cannabis entrepreneurs.

 

While ACS does not grow, harvest, distribute or sell cannabis or any substances that violate United States law or the Controlled Substances Act, nor does it intend to do so in the future, ACS may be irreparably harmed by a change in enforcement by the federal or state governments.

 

Reverse merger

 

Promap Corporation (“Promap” or “the Predecessor Company”) was incorporated in the State of Colorado on November 12, 1987. Promap was an independent GIS and custom draft energy mapping company for the oil and gas industry in the United States and Canada.

 

On August 14, 2013, Promap, in a share exchange agreement (the “Share Exchange Agreement”) acquired 94% of the issued and outstanding share capital of Advanced Cannabis Solutions, Inc. (“ACSI”), a private Colorado corporation. On November 9, 2013, Promap acquired the remaining 6% of the share capital of ACSI. It was planned that the ongoing Company operations would focus on ACSI’s business plan as its core activity and operate under the name ACS. On March 27, 2014 the Securities and Exchange Commission (the “SEC” or the “Commission”) issued a trading halt order on the Company’s common stock, and issued a statement that they were investigating affiliated stockholders who may have made illegal sales of common stock. The order was not directed at the management of the Company and is considered a private investigation. The common stock began trading again, unlisted, on the OTC on April 10, 2014. The Company has completed a change in trading symbol to CANN (OTCBB) and has completed its official name change. In December 2013 the previous oil and gas mapping operations of Promap, as described above, were sold to the former Chief Executive Officer of Promap.

 

The Share Exchange Agreement has been accounted for as a reverse acquisition and recapitalization using accounting principles applicable to reverse acquisitions. Under reverse acquisition accounting, ACS, the acquired entity, is treated as the accounting acquirer of Promap. Consequently, the accompanying consolidated financial statements reflect only the operations of ACS for all periods presented, as they replace the historical financial statements of Promap, the legal acquirer. The financial statements have been prepared as if Advanced Cannabis Solutions, Inc. had always been the reporting company and, on the share transaction date, changed its name and reorganized its capital stock.  For all periods presented, all references to common shares, warrants and per share amounts have been retroactively adjusted to reflect the reverse merger.