Sign up Australia
Proactive Investors - Run By Investors For Investors

AusCann Group secures $33.4 million to fund ambitious medicinal cannabis future

An $8 million share purchase plan (SPP) will follow the placement.
three hands dropping coins into three jars
The aim is to provide Australian and global markets with medicinal cannabis products

AusCann Group Holdings Ltd (ASX:AC8) 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.

Join our Crypto, Blockchain and Cannabis Telegram group here
View full AC8 profile View Profile

AusCann Group Holdings Ltd Timeline

Related Articles

cannabis leaf and green tablets
October 30 2018
The company will now proceed with stage II of the human clinical trial.
1539364967_Cannabis-plant.jpg
October 10 2018
Management behind ICC International Cannabis Corp has a clear buy, build and sell strategy
medical cannabis
October 01 2018
The companies will collaborate on activities to develop cannabinoid medicines as a medical option in Chile.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use