- Hemp producer ECS Botanics (ECS) has entered a mid-week trading halt ahead of a proposed fundraising effort
- Company shares will remain halted from trading on the ASX until Friday, when full details of the capital raise should be made public
- Today’s proposed raise may not come as a surprise to shareholders as ECS ended September with only 2.2 quarters of funding left
- The business ended the previous quarter with $2.52 million in the bank after bringing in revenue of $905,000
- Before today’s trading halt, shares in ECS Botanics were trading at 3.9 cents each on Tuesday, October 26
Hemp producer ECS Botanics (ECS) has entered a mid-week trading halt ahead of a proposed fundraising effort.
The company’s shares will remain halted from trading on the ASX until Friday, October 29, when full details of the capital raise should be made public.
News of the proposed financing may not come as a surprise to shareholders, since ECS ended September with only 2.2 quarters of funding growth left.
The business, which produces a variety of hemp and medicinal cannabis products, had $2.52 million worth of cash in the bank at September 30.
It burnt through $1.17 million on operating activities during the three month period, with over $1 million of that spent on production and manufacturing costs.
Spending on operating activities is slightly higher than the previous quarter, as ECS scales up its medicinal cannabis oil products from 3,000 units to over 15,000 units.
ECS Botanics also brought in $905,000 in revenue during the September quarter from customer receipts of $1.06 million.
Before today’s trading halt, shares in ECS Botanics were trading at 3.9 cents each on Tuesday, October 26.