- Little Green Pharma (LGP) has received firm commitments to undertake a $22 million placement
- All up, 34 million new fully-paid ordinary shares will be issued to investors at 65 cents
- This price represents a 30.5 per cent discount on LGP’s trading price of 93.5 cents on February 4
- LGP is also planning to undertake a share purchase plan to raise up to $5 million
- Eligible shareholders will be able to subscribe for up to $30,000 worth of shares without incurring any brokerage or transmission costs
- LGP will use the money to speed-up sales and marking efforts in both Australia and overseas, and expand its manufacturing and cultivation capacity
- LGP is down 14.4 per cent and shares are trading at 80 cents
Little Green Pharma (LGP) has received firm commitments to undertake a $22 million placement.
The medical cannabis company entered a trading halt on February 5 but did not disclose how much it would be raising or what the funds would be used for.
All up, 34 million new fully-paid ordinary shares will be issued to investors at 65 cents.
This price represents a 30.5 per cent discount to LGP’s trading price of 93.5 cents on February 4, and an 8.4 per cent discount to the 20-day volume-weighted average price.
Shares are expected to settle on or around February 15.
LGP is also planning to undertake a share purchase plan to raise up to $5 million.
Eligible shareholders will be able to subscribe for up to $30,000 worth of shares, which will be priced the same as the placement of 65 cents.
The plan will open on February 15 and close on March 3. Shares will be allocated on March 11 and begin trading on the ASX on March 12.
LGP will use the money from both the placement and share purchase plan to speed-up sales and marking efforts in both Australian and overseas markets, and expand its manufacturing and cultivation capacity.
“Little Green Pharma has gone from strength to strength, and has achieved immense growth in the last year, most recently setting new records to quarterly revenue, unit sales, and patient numbers,” Managing Director Fleta Solomon said.
“We expect the next 12 months to be very exciting for the company and look forward to reporting on our continued success,” she added.
LGP is down 14.4 per cent and shares are trading at 80 cents at 1:58 pm AEDT.