Significantly, the placement price is more than double the price of the company’s ASX debut in February of $0.20.
This demonstrates the high market demand for the company and validates AusCann’s strategy as an Australian-based and globally connected player in the medicinal cannabis sector.
Canopy Growth Corporation, North America’s leading cannabis producer and AusCann’s strategic partner, participated in this placement.
Canopy’s investment was complemented by strong interest from a range of other institutional investors including leading Australian fund manager Tribeca Investment Partners.
Elaine Darby, managing director, commented: “The strong support we have received for this capital raising continues to demonstrate the high level of investor interest in the medicinal cannabis sector in Australia.”
Recent partnership with Tasmanian Alkaloids
Earlier this week, AusCann signed a heads of agreement to form a long-term exclusive strategic partnership with Tasmanian Alkaloids, a global poppy grower and processor.
The two companies will work together to establish cultivation, manufacturing and distribution operations for medicinal cannabis in Australia and overseas.
Jointly, the two companies will secure a licence to cultivate and manufacture medicinal cannabis in Tasmania.
The Tasmanian license will be in addition to AusCann’s current medical cannabis cultivation licence granted last week by the Office of Drug Control.
Tasmanian Alkaloids is an established manufacturer of alkaloid raw materials and produces circa 40% of the world’s alkaloid raw material crop in Tasmania.
It boasts a modern manufacturing facility, which is fully compliant with Good Manufacturing Practice standards.
Tasmanian Alkaloids has established relationships with many of the world’s leading pharmaceutical companies and is the largest producer and exporter of thebaine, and also produces oripavine and codeine at its Tasmanian facility.
AusCann and Tasmanian Alkaloids will work together to establish cultivation, manufacturing and distribution operations for medicinal cannabis in Australia and overseas.
AusCann is a medical cannabis company that commenced trading on the ASX in February after it raised the maximum $5 million under a prospectus offering.
The company aims to produce and provide high quality, affordable and clinically validated cannabis medicines to patients.
It is bringing together leading expertise and operations across all aspects of the medical cannabis value chain, from cultivation and production, through to manufacture and distribution of products and has built a strong team of experts and partners across the globe.
- Canopy Growth Corp (CVE:CGC): the largest producer of medicinal cannabis globally;
- DayaCann: the only licensed medicinal cannabis grower in Chile; and
- Tasmanian Alkaloids: producer of ~40% of the world’s alkaloid raw material.
During early May, AusCann was granted a licence to cultivate medicinal cannabis in Australia.
The global cannabis market is currently valued at US$50 billion and growing, with an estimated 600,000 patients currently receiving treatment.