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.