Alchemist Mining Inc (CSE:AMS) announced Tuesday that it is raising up to $12 million in a private placement to help it transform into a leading technology platform for the North American cannabis sector.
The Vancouver-based company plans to use a portion of the proceeds towards completing a number of recently-announced agreements with Green Rush Consulting, Agua Technologies, Lady Chatterley’s Health and Rubikon Blockchain Corp, and building out the resulting assets.
''We have been working diligently over the last few months to establish our team of experts and roll out the first comprehensive, laterally integrated, technology platform for the cannabis sector in both the United States and Canada,” said Paul Mann, Alchemist’s CEO in a statement.
Alchemist’s short-term plan will include adding more components to its supply chain. The cannabis company will ensure that administrative bodies, business partners and consumers are all confident that the products and companies on its platform are legally licensed, compliant in all areas and accountable for the quality of the products that they produce and sell, Mann added.
The company issued 48 million shares at a price of C$0.25 for gross proceeds of up to $12 million. Each unit is comprised of four common shares and four warrants, which will be exercisable for one additional share at a price of $0.15 for two years from the closing date.
Previously a junior miner, Alchemist's goal is to be a global provider of technology solutions to the cannabis sector.
The company also reported its 4Q 2018 financials on Tuesday, showing a net loss of C$590,000 or $0.02 per share.
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