Proactive Investors - Run By Investors For Investors

Auscann Group raises more capital, well-funded for manufacturing cannabinoid medicines in Australia

Many of the company's shareholders took this opportunity to increase their position.
Australian dollars
Sufficient capital for next stage of growth

Auscann Group Holdings Ltd (ASX:AC8) has raised about $1.9 million from shareholders via a share purchase plan (SPP) at an issue price of $1.05 per share.

The SPP follows a share placement to institutional and sophisticated investors which raised about $33.4 million.

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

AusCann will use the funds raised under the SPP and share placement for the following:

• Clinical studies for product registration in Australia;
• Expansion of an Australian manufacturing plant for final dosage form manufacturing;
• Establishment of a manufacturing facility in Chile;
• Establishment if medical outreach programmes in new international markets;
• Research and development of cannabinoid pharmaceuticals; and
• Costs of the offers and general working capital requirements.

 

AusCann managing director Elaine Darby said: “AusCann thanks all of our shareholders for their support in this share purchase plan.

“It was great to see many of our shareholders taking this opportunity to increase their position in the company.

“We now have sufficient capital for our next stage of growth as we move towards Australian manufacturing of proprietary capsule-based cannabinoid medicines.”

READ: AusCann Group harvests second crop in Chile

Auscann recently completed its second harvest with joint venture partner Fundación Daya in Chile.

The second crop yielded 620 kilograms of dried cannabis product, an increase of over 50% on the 400 kilograms yielded from the first crop.

This equates to a yield of about 1.2 tonnes per hectare.

Join Proactive’s Crypto, Blockchain and Cannabis Telegram group here
View full AC8 profile View Profile

AusCann Group Holdings Ltd Timeline

Related Articles

cannabis leaf
May 09 2019
The company plans to leverage its portfolio of brands as well as its distribution network of more than 39,000 European pharmacies to maximize margins and profitability
cannabis leaf next to bottle
April 29 2019
The cannabis holding company has four unique, synergistic business under its umbrella
cannabis
June 09 2019
1933 Industries is progressing with plans to launch one of Nevada's largest hemp extraction facilities, amid a flurry of other activity

© Proactive Investors 2019

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