Funds will also be used to further invest into the company’s Canadian assets and to provide working capital.
The placement at an issue price of $0.63 was fully subscribed with funds raised from sophisticated and institutional investors.
Significantly, seven new institutional investors have joined the company’s register.
Ian Mutton, chairman, said: “This rounds off a very successful year since the listing of THC in May 2017.
“The board is looking forward to continue to achieve new milestones throughout 2018.”
The company intends to raise a further $3 million through a share purchase plan for eligible shareholders at the same issue price.
THC, through wholly owned subsidiary Canndeo Limited, has recently secured supply arrangements with Endoca and BOL Pharma which will provide best in class products for the Australian market.
THC has been awarded two of the three licences required for the production of medicinal cannabis in Australia.
An application for the third licence was submitted to the Office of Drug Control simultaneously with the application for the Medicinal Cannabis licence.
Manufacturing site being developed
The company is continuing the development of an Australian manufacturing site which will provide its own production capability.
Initial work has also started on the development of a medicinal cannabis clinic model.
In Canada, THC is holding discussions with several companies that specialise in the provision of supplies and services to rapidly growing Canadian cannabis markets.
Canadian subsidiary Crystal Mountain continues to expand its product range with the addition of several agencies that complement the range.
Key milestones delivered
Canndeo, which operates under a pharmaceutical model, has delivered key milestones since THC listed in May this year, such as:
- International Partner Alliance agreement;
- Medicinal Cannabis Research Licence Granted July 2017;
- Clinical Trial partner mandated;
- Medicinal Cannabis Prescription and Dispensing Portal;
- Medicinal Cannabis Licence granted October 2017;
- Manufacturing Licence application lodged;
- Licensing agreement with National Access Cannabis of Canada; and
- Significant investment into Australian facilities.