- Epsilon Healthcare (EPN) is getting ready to raise more capital, after placing its securities in a trading halt
- The business will remain halted from trade until Thursday, when full details of the fundraise are set to be released
- In recent days, EPN has been focused on extending its agreement with cannabis producer, The Valens Company
- Valens wants to use Epsilon’s Southport Facility, known for its cannabis extraction capabilities, to manufacture new products
- Before today’s trading halt, EPN shares last traded at 10.5 cents
Epsilon Healthcare (EPN) is getting ready to raise more capital, after placing its securities in a trading halt.
The pharmaceutical business will remain in a trading halt until Thursday when full details of the fundraising are set to be released.
Prior to today’s flagged fundraiser, EPN had been focused on the extension of its agreement with cannabis producer, The Valens Company.
Under the Binding Heads of Agreement — which has been extended to January 31 — Valens gets access to Epsilon’s Southport manufacturing facility.
The facility is reportedly the largest cannabis extraction facility in the Southern Hemisphere and has both TGA and EU GMP capability.
Valens would use the facility to manufacture products for new markets in Asia-Pacific, Latin America, Europe and the UK.
In return, EPN would be allowed to use Valens’ intellectual property while operating the Southport Facility and Valens would fund all future operational and capital expenditure.
The two businesses extended the agreement last week in order to give themselves more time to enter into a definitive agreement.
Before today’s trading halt, EPN shares last traded at 10.5 cents each on Monday, December 6.