THC Global Group Ltd (ASX:THC) is in a trading halt with an announcement upcoming in regard to a material acquisition.
The trading halt will remain in place until the beginning of normal ASX trade on Tuesday, May 12, 2020, or when an announcement is released to the market, whichever occurs earliest.
THC Global has a market cap of approximately $42.2 million and shares last traded at 30 cents, having risen from 19.5 cents at close on March 30.
$4 million debt facility
THC recently secured a A$4 million debt facility to support the commercial production scale-up of medicinal cannabis-derived medicines from its Australian facility.
The debt facility is from Mitchell Asset Management, an ASIC licensed AFSL holder which provides bespoke funds management, investment and corporate advisory services.
THC Global chief executive officer Ken Charteris said: “Taking advantage of our strong balance sheet, we’ve agreed to a $4 million debt facility, secured against our Southport Manufacturing Facility.
“By choosing to raise further funding by debt, we’ve been able to boost the company’s cash balance without dilutionary equity capital raisings in current market conditions.”