Eco Equity has announced a £10.2mln convertible loan note offer to fund the development of its medicinal cannabis cultivation project in Zimbabwe.
The loan note is available to individuals who qualify as high net worth individuals alongside family offices, institutional, professional and sophisticated investors.
The notes carry a coupon of 15% paid annually and will automatically convert into ordinary shares 36 months from the date of issue.
Eco Equity was the first company to hold a medicinal cannabis licence in Zimbabwe and is in talks to replicate the model in Antigua.
Cultivation in Zimbabwe was due to start in the second quarter of 2020, but coronavirus has delayed that until the end of the year, it said today.
It is the second funding for the medicinal cannabis group, having raised £8.1mln in a first round.
The London-based company said the proceeds from the new loan notes will be utilised in Zimbabwe for extraction equipment, refining equipment, the completion of three green-housing facilities seeds and working capital.
Jon-Paul Doran, Eco Equity’s chief executive, added: “Medicinal cannabis has proved itself to be one of the more resilient industries during the coronavirus pandemic.
“Having begun cultivation in Zimbabwe, we are looking forward to the next stages throughout the rest of 2020 and into 2021 as the market goes from strength to strength.”