The SPP demonstrates that the company is willing to reward loyal shareholders.
() is set to open a share purchase plan (SPP) raising up to $8 million by offering shares priced at $1.05.
The SPP follows the recent share placement which raised $33.4 million in new funding for the company.
READ: AusCann Group secures $33.4 million to fund ambitious medicinal cannabis future
The SPP will open this Thursday and eligible shareholders as of the record date of last Friday will be able to apply for up to $15,000 worth of new shares, subject to scale back.
Table 1: Indicative SPP timetable
AusCann’s managing director Elaine Darby said: “We are very pleased to offer existing shareholders the opportunity to participate in the evolution of AusCann.
“The capital we secure from this raising, along with funds raised under AusCann's recent placement, will enable us to accelerate our corporate objectives and provide Australian and global markets with efficacious, clinically validated and cost-effective medicinal cannabis products.”
Funding applied to multiple fronts
It is intended that funds raised under the SPP 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.
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