- Cannabis-based medicine supplier Althea Group (AGH) receives firm commitments to raise $1.5 million via a share placement
- The money will be raised through the issue of 22.4 million new fully-paid ordinary shares to institutional and sophisticated investors at 6.7 cents each
- Althea also intends to undertake a share purchase plan to raise up to $2.5 million with eligible shareholders able to subscribe for up to $30,000 worth of shares
- The money from both the placement and share purchase plan will be used to fund growth and support the launch of additional products
- Althea is down 18.1 per cent on the market with shares trading at 6.8 cents at 3:11 pm AEDT
Cannabis-based medicine supplier Althea Group (AGH) has received firm commitments to raise $1.5 million via a share placement.
The money will be raised through the issue of 22.4 million new fully-paid ordinary shares to institutional and sophisticated investors at 6.7 cents each.
This price represents a 19.3 per cent discount to Althea’s last trading price of 8.3 cents on October 28 and a 19.1 per cent discount to the five-day volume-weighted average price.
Subject to shareholder approval, around 2.1 million shares will be issued to Althea directors for $140,000.
Althea also intends to undertake a share purchase plan (SPP) to raise up to $2.5 million.
Eligible shareholders will be able to subscribe for up to $30,000 worth of shares, priced the same as the placement of 6.7 cents.
“The continuing support for AGH, as we fast approach break-even and cash flow positivity, has been exceptional and we look forward to offering our existing shareholders the opportunity to widen their investment in the company in the upcoming share purchase plan,” CEO Joshua Fegan commented.
Althea will use the money from both the placement and SPP to fund growth and support the launch of additional products across its cannabis-based medicines business.
Althea was down 18.1 per cent on the market with shares trading at 6.8 cents at 3:11 pm AEDT.