Update (4:45 p.m.): Updated with Full Circle Capital's statement.
NEW YORK (TheStreet) -- Investment company Full Circle Capital (FULL) plunged to a one-year low of $6.67 as of 12:30 p.m. on Thursday after the U.S. Securities and Exchange Commission froze trading on Advanced Cannabis Solutions (CANN), an OTC Bulletin Board stock in which Full Circle has an investment.
Full Circle said in its second quarter earnings report on Feb. 10 that it invested $500,000 in warrants as part of a $30 million dollar senior secured convertible note purchase agreement with Advanced Cannabis Solutions on Jan. 21.
Full Circle released the following statement on Thursday afternoon in response to numerous investor inquiries:
"Full Circle Capital Corp. entered into a purchase agreement with Advanced Cannabis Solutions, Inc. to fund $30.0 million of senior secured convertible notes in January 2014. In conjunction with the closing of this agreement, Full Circle Capital purchased for $500,000 warrants to purchase 1.0 million shares of currently unregistered common stock of American Cannabis stock at a $5.50 per share exercise price. To date, these warrants have not been exercised, transferred or sold. Further, none of the senior secured convertible notes have been funded and Full Circle Capital retains the contractual right to fund these notes at its sole and absolute discretion."
TheStreet Ratings team rates FULL CIRCLE CAPITAL CORP as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation: