- Epsilon Healthcare (EPN) secures firm commitments for a $1.65 million placement to further expand activity at its domestic medicinal cannabis operations
- The placement will see shares up for grabs at 2.7 cents each, representing a 16 per cent discount to the last closing price
- Subject to shareholder and regulatory approval, participants will receive three options for every four shares issued, exercisable at five cents with expiry three years from issue
- EPN says the cash injection will support its Southport Facility to fund the working capital and inventory ramp up aligned with its expanding operations and customer base
- Epsilon Healthcare is down 15.2 per cent to trade at 2.8 cents at 2:08 pm AEST
Epsilon Healthcare (EPN) has secured firm commitments for a $1.65 million placement to further expand activity at its domestic medicinal cannabis operations.
The placement will see shares up for grabs at 2.7 cents per share, representing a 16 per cent discount to the last closing price and a 23.5 per cent discount to the 15-day volume-weighted average price.
A total of 60 million fully paid ordinary shares will be issued under the placement, with priority for early applicants.
Additionally, the company will issue three options for every four shares held, subject to approval. This will come at an exercise price of five cents with expiry three years from issue.
The placement was supported by management, with the Group Chief Operating Officer, Sonny Didugu, and the former Group CEO of the company, Jarrod White, both participating.
Executive Chairman Steven Xu said the company is pleased to have secured this additional capital in tough market and economic conditions with support from both new and existing investors.
“This additional working capital will assist the company in further advancing its domestic medicinal cannabis operations building further on the significant progress made in 1H 2022,” he said.
The company said the cash injection will support its Southport Facility to fund the working capital and inventory ramp up aligned with its expanding operations and customer base.
Epsilon Healthcare was down 15.2 per cent to trade at 2.8 cents at 2:08 pm AEST.