- Medicinal cannabis company Althea Group (AGH) receives commitments to undertake a $10.64 million placement
- More than 44.3 million new fully paid ordinary shares will now be issued to institutional and sophisticated investors at 24 cents each
- This price represents a 15.8 per cent discount to Althea’s closing price of 28.5 cents on August 20
- Once received, Althea will use the money to fund growth and support expansion in Australia, Europe and other international markets
- Shares in Althea are down 8.77 per cent on the market and are trading at 26 cents at 2:13 pm AEST
Medicinal cannabis company Althea Group (AGH) has received commitments to undertake a $10.64 million placement.
The company entered a trading halt on August 23 after announcing a capital raise and a new deal with Canopy Growth Corporation’s subsidiary.
A total of 44,351,885 new fully paid ordinary shares will be issued to institutional and sophisticated investors at 24 cents.
This price represents a 15.8 per cent discount to Althea’s closing price of 28.5 cents on August 20.
Once received, Althea will use the money to fund growth and support expansion in Australia, Europe and other international markets.
Canaccord Genuity Australia will act as Lead Manager.
CEO Joshua Fegan has stated how the money will be used.
“The additional funding will fuel a range of strategic growth initiatives in our pharmaceutical business, and I’d like to take this opportunity to thank our new and existing shareholders for their support,” Mr Fegan said.
“We look forward to updating the market with news regarding our progress in established territories as well as our ongoing international expansion.”
Shares in Althea were down 8.77 per cent on the market and were trading at 26 cents at 2:13 pm AEST.