Love Hemp Group PLC (AQSE:LIFE, OTCQB:WRHLF), the supplier of CBD health and wellness products, announced plans to raise up to £2mln via a placing and conditional subscriptions priced at 1p per share.
The fresh funds will be used for general working capital and for streamlining the business by moving to a new facility and forming strategic alliances with key suppliers, the company said in a statement.
Love Hemp said its planned move to the Main Market of the London Stock Exchange in on track for the first quarter.
The move to a new site and the resulting consolidation of all business activities will cut operating costs substantiality, it said.
Meanwhile, chairman Andrew Male, chief executive Tony Calamita and others in the company have elected to have their renumeration paid in shares until 30 June 2022, "greatly" reducing the company's cash outlay.
Love Hemp last week announced that it had enhanced its governance with the appointment of Garry Cook and Graham Mullis as non-executive directors.
READ: Love Hemp strengthens board to focus on main market listing
In addition, it has formalised the role of chief financial officer with James Mahony, who will be taking on a more active role with regards to reporting and governance within the operations.
Love Hemp said it aims to build a strong relationship with key suppliers by offering them shares for the supply of products in the company.
One of these companies is Newell Sciences Ltd, ("Newell Sciences"), which supplies Love Hemp with premium raw CBD ingredients from the US and is also a partner in Love Hemp's Novel Food application with the Food Standards Agency.
Love Hemp said it is also offering a 'Shares for Debt' programme to strengthen its balance sheet. It noted that the participants of the 'Shares for Debt' programme are all engaged with the company and are forward-looking relationships.
"Love Hemp has initiated transformational changes to create ongoing efficiencies, increase organic sales growth across all channels and build greater shareholder value," commented Calamita.
"Combined with recent board appointments, which takes us to another level, we are now well positioned for our move to the Main Market which is anticipated to be before the end of the first quarter.
"The funds raised through the latest financing round will be used to support this process as well as our streamlining initiatives."