Creso Pharma Ltd (ASX:CPH, OTCQB:COPHF) has secured firm commitments from investors to raise $5 million through an issue of 72.4 million new fully paid shares priced at $0.069 per share.
The placement is strongly supported by a range of local and international investors, including a commitment for participation in the placement for approximately $318,250 dollars from non-exectutive director Alan Blumenthal.
Funds raised by the placement will be used to progress a number of projects, including the ongoing expansion in the US following the recent acquisition of Sierra Sage Herbs LLC and their leading Green Goo brand.
Read: Creso Pharma’s acquisition of Sierra Sage Herbs see multiple product launches on the horizon
CEO and managing director William Lay said the funds will provide the company with additional financial flexibility to advance its focus to the US market.
“We have a number of growth initiatives underway and look forward to providing additional updates as these materialise.”
The placement will be managed as follows:
- 67,851,448 shares will be issued to non-related parties within the company’s available placement capacity;
- 4,612,320 shares will be issued to non-executive director Adam Blumenthal; and
- EverBlu Captial Ltd, Creso’s corporate advisor, acted as lead manager to the placement.
EverBlu will earn a 6% cash fee ($300,000) and subject to shareholder approval, it will receive one option for every new option issued under the placement on the same terms and conditions as the placement options.
“We are very pleased to have achieved such strong support for this placement and I would like to take this opportunity to welcome a number of new investors to our register, as well as thank existing shareholders that have made commitments,” said Lay.
Written by Duncan Bailey