The total placement was completed at a discount of only 7.3% to the last closing price representing underlying confidence in the company’s current strategy developed following a strategic review process commenced in September.
THC will apply the additional funding towards advancing the Medimar Platform and expanding the company’s manufacturing capability for additional finished goods forms.
Increased confidence in Medimar platform
Group chief executive officer Jarrod White said: “Since assuming the management responsibilities of THC Global we have worked tirelessly as a group to assure the reduction of operating cash burn and redirection of corporate investment and working capital towards monetisation of the company’s significant core asset base, including the Southport Facility – one of the world’s largest GMP cannabis extraction facilities.
“Following attracting a strategic investment partner into the company, we have an increased confidence in the commercial value of the Medimar platform and the ability for the company to monetise its core manufacturing assets based on the new corporate strategy developed and put in place by this new management team.
“Moving away from being an own-brand manufacturer and opening the company up to global contract manufacture opportunities in the cannabis sector combined with launching a new platform for medicinal cannabis medicines access in Australia will see the company utilising its significant production capacity far more over 2021.”
Strategic intent and support management team
The size of this strategic investment and capital raising was limited by THC’s available placement capacity to issue securities prior to the planned extraordinary general meeting proposed to be held in January 2021.
This meeting will also consider the change of the company’s name to Epsilon Healthcare Limited, furthering the company’s corporate repositioning.
Additionally, the company advises that the ASX has confirmed that the ASX Code ‘EPN’ is available and has been reserved for the company pending the new name.
THC Global expects to achieve a number of key milestones in early 2021, including the launch of the Medimar Platform with a number of high-profile launch partners, and commencement of production of additional dosage forms at the Southport Facility including vape liquids, hard gelatin capsules, suppositories, ovules and creams.