An $8 million share purchase plan (SPP) will follow the placement.
() has raised $33.4 million via a share placement to institutional and sophisticated investors from North America and Australia.
Proceeds will fund cannabinoid pharmaceutical R&D and clinical studies, expansion of its operations in Chile and Australia and medical outreach programs in new international markets.
Efficacious, clinically validated and cost-effective medicinal cannabis products
AusCann’s managing director Elaine Darby said: “We are very pleased to offer both new and existing shareholders the opportunity to participate in the evolution of AusCann.
"The capital we secure from this raising will enable us to accelerate our corporate objectives and provide Australian and global markets with efficacious, clinically validated and cost-effective medicinal cannabis products.”
READ: AusCann Group Holdings to accelerate medical cannabis strategy through master grower appointment
The placement will see 30.4 million shares issued at $1.10 and placement participants will also receive 1 option for every 2 shares subscribed for exercisable at A$1.465 expiring in 30 months.
$8 million share purchase plan to follow
AusCann intends to offer a share purchase plan (SPP) raising up to $8 million to eligible existing shareholders, providing an opportunity for shareholders to purchase shares at the placement price.
This will also provide an extra avenue of funding for AusCann.
Funds to go towards a number of initiatives
It is intended that funds raised under the placement will be used as follows:
• Clinical studies for product registration in Australia;
• Expansion of an Australian manufacturing plant for final dose form manufacturing;
• Establishment of a manufacturing facility in Chile;
• Establishment medical outreach programs in new international markets;
• Research and development of cannabinoid pharmaceuticals; and
• Costs of the offer and general working capital requirements.
