AusCann raises $12m

Friday, 19 May, 2017 - 13:33

AusCann Group Holdings has confirmed a $12 million capital raising to fund the development and manufacture of medical cannabis products in Australia.

AusCann told the markets today it had raised the funds through the placement of 24 million shares at 50 cents each, representing a 16 per cent discount to its five-day volume-weighted average price.

The proceeds of the raising will be used to further develop its cultivation facility in Western Australia, and progress activities in Chile with its joint venture partner DayaCann.

“The strong support we have received for this capital raising continues to demonstrate the high level of investor interest in the medicinal cannabis sector in Australia,” managing director Elaine Darby said.

“The move by the Australian government to introduce a legal framework provides the foundation for us to advance our strategy to supply high-quality and affordable medicinal cannabis to patients in need.

“Our Australian medicinal cannabis licence and recent partnership with Tasmanian Alkaloids have been major milestones, advancing our development in the Australian market.

“We have access to expert knowledge, facilities and unrivalled skills through a range of global partnerships that give AusCann a real and sustainable competitive advantage in the market.”

Merchant Corporate Advisory acted as lead manager to the raising.

AusCann shares were 0.8 per cent lower to 57.5 cents each at 1:30pm.