- Creso Pharma (CPH) has received firm commitments to undertake an $18 million placement
- All up, roughly 94.7 million new fully-paid ordinary shares will be issued to institutional, professional and sophisticated investors at 19 cents
- This price represents a 17.4 per cent discount to the last trading price of 23 cents on March 23
- Subject to shareholder approval, Creso will provide one option to shareholders for every four shares issued exercisable at 38 cents with expiry 12 months from issue
- Creso will use the money to undertake clinical trials, increase cannabis product marketing in Canada and fund the acquisition of Halucenex Life Sciences
- Shares in Creso are down 6.52 per cent on the market and are trading at 21.5 cents
Creso Pharma (CPH) has received firm commitments to undertake an $18 million placement.
The company entered a trading halt on March 24 but did not disclose how much it intended to raise or what it would use the funds for.
All up, roughly 94.7 million new fully-paid ordinary shares will be issued to institutional, professional and sophisticated investors at 19 cents.
This price represents a 17.4 per cent discount to the last trading price of 23 cents on March 23 and an 8.8 per cent discount to the 15-day volume-weighted average price.
Subject to shareholder approval, Creso will provide one option to shareholders for every four shares issued.
These options will be exercisable at 38 cents with expiry 12 months from issue.
EverBlu Capital will act as lead manager and, subject to shareholder approval, receive a 6 per cent fee and one million broker shares for every $5 million raised.
Creso will use the money to undertake psychedelic clinical trials, increase cannabis product marketing in Canada and fund the acquisition of Halucenex Life Sciences.
“Key short-term focus will include finalising the acquisition of Halucenex and undertaking clinical trials. Importantly, the acquisition provides the company with access to another lucrative vertical and potential revenue stream,” Non-Executive Chairman Adam Blumenthal said.
“We will also be ramping up our nutraceutical division and preparing for the anticipated legalisation of cannabis in the U.S. through our Canadian operations,” he added.
Creso is down 6.52 per cent on the market and shares are trading at 21.5 cents at 11:31 am AEDT.