- Althea Group (AGH) enters a trading halt while it plans an upcoming capital raise
- In its September quarterly report, the medicinal cannabis company says the capital raise will “improve its financial position” after a period of increased operating expenditure
- The company has been focused on cutting costs since its annual review in July, with $900,000 in annualised cost savings identified for the current quarter
- Further details on the capital raise will likely be released by November 2, when the company expects the trading halt will be lifted
- AGH shares last traded at 8.3 cents on October 28
Althea Group (AGH) has entered a trading halt while it plans an upcoming capital raise.
The cannabis-focused medicinal company hasn’t provided any details on how much it hopes to raise nor how it will spend the funds once the capital raise is complete.
Today’s capital raise comes alongside Althea’s September quarterly report which highlighted a 180 per cent increase in customer receipts to $8.12 million.
The company also prioritised cost saving initiatives following an annual review. These efforts commenced in the September quarter and a further $900,000 in cost savings will be implemented in the current December quarter.
For context, the company reported a net operating outflow of $2.7 million, and $259,000 in investing activities, which left it with $3.5 million in cash as at September 30 and an estimated 1.3 quarters of available funding.
Althea said it expects to reduce operating expenses in the current quarter as last quarter’s expenditures were partly due to increasing inventories associated with the launch of two products.
The quarterly report also confirmed the company is in advanced and confidential negotiations for a “transaction that, if successful, will improve its financial position.”
Althea expects the trading halt will be lifted on Wednesday, November 2, by which time the capital raise details will likely be released.
The company last traded at 8.3 cents per share on October 28.