Algae.Tec (ASX:AEB) has received subscriptions for circa $5.45 million and has therefore reached the minimum subscription for its $8 million entitlement issue.
This has allowed Algae.Tec to meet the final condition of its agreement with Jardin De Invierno SA to expand its footprint into the rapidly growing medicinal marijuana market.
Algae.Tec is a specialist algae producer, which has developed a technology that captures waste carbon dioxide to produce commercial quantities of algae for use in the food and fuel sectors.
The combination of increasing sales of algae nutraceutical products with the sales of cannabinoid products is expected to propel Algae.Tec into the future.
The company is now in a position to expand its production in Atlanta, to commence planting of crops and also research into new products, which are likely to fast track its growth.
Jardin de Invierno, based in Uruguay, harvests and produces non-synthetic cannabis products for medical purpose.
The combined growing and yield efficiencies of the two companies and the resultant cost savings are expected to have a significant positive impact on revenue generation from medical cannabis.
Algae. Tec is now seeking to place the final shortfall amount of $2.5 million under the $8 million entitlement issue.