Creso Pharma Limited announced an AUD$5.35 million investment from various investors. Investments came from a series of loans, payable at 15 per cent, per annum interest.
Creso Pharma Limited cultivate and produce cannabis pharmaceutical treatments. Funds will increase sales of Creso’s human and animal products in Europe and Canada.
Funds will also be used to increase Cannabis cultivation, repay debts and provide working capital. Capital raising was managed by EverBlu Capital Limited and will receive a six percent, or $300,000 fee.
The company plans to seek shareholder approval to repay the principal of loans through 107 convertible notes. The planned convertible notes will have a face value of $50,000.
Investors also have the option to convert the notes into company shares at the conversion price of $0.50.
“We are pleased to announce this successful capital raising which was strongly supported by strategic and sophisticated investors. The Company wishes to take this opportunity to thank investors for their ongoing support,” Creso CEO Miri Halperin said.
Creso currently operates and owns a 2,200 square metre cannabis facility in Canada. Only until recently has Creso received a cultivation licence for the facility. The company expects the facility to help generate this year’s quarterly revenue.
Creso currently has two human and two animal cannabis health products on the market in Europe. A further four new products are ready for launch.