Botanical Holdings, the medicinal cannabis-focused investment company, has completed a pre-listing equity funding round of £4.5mln.
An initial tranche of £1.5mln is available immediately with two more tranches of equal size but at increasing share prices to reflect Botanical Holdings’ increasing value, the company said.
It said the proceeds will be used for several activities, including for subsidiary EuroCan to continue its first complete on-site test growing cycles in the group’s new 2,800-square-metre greenhouse facility in Lesotho.
These test growing cycles will be used to develop valuable research and refine expertise as EuroCan continues its agronomic development in Lesotho, which management said will help it achieve Good Agricultural and Collection Practices (GACP) certification.
Funds will also be used by the group to begin construction of EuroCan’s 5,000 sq m, eventually expanding to 20,000 sq m, greenhouse and 3,600 sq m handling/processing facility in Portugal, which are expected to complete by the end of the year.
Botanical Holdings said it is also continuing to advance towards a listing on the main market of the London Stock Exchange this year.
“Legalization of cannabis for medicinal use is accelerating around the world. This is driven by the ongoing development of new therapies using medicinal cannabis, a shift in attitudes towards its therapeutic qualities and more knowledge of its benefits,” said chief executive Carl Esprey.
"Completing this fundraising for Botanical Holdings is a vote of investor confidence in the medicinal cannabis industry, in its development of therapies for patients and in Botanical Holdings’ ability to supply inputs into this demand in the future."
With growing, handling and processing facilities in both northern and southern hemispheres, he said this will enable EuroCan to be a major year-round supplier of raw material to the increasing demand for the medicinal cannabis sector.
"The planned listing of our shares on the Main Market of the London Stock Exchange will ensure that we are able to play a full role in satisfying industry demand for our products.”