- Cannabis pharmaceutical company THC Global (THC) has successfully raised $6.6 million in a placement to new institutional investors
- The money raised will be used to strengthen the company’s balance sheet and accelerate production at its Southport manufacturing facility
- THC will also offer a share purchase plan (SPP) to eligible shareholders, with subscriptions up to $30,000 at 30 cents per share
- With the successful completion of the placement, THC now has a consolidated cash balance of around $9.3 million
- After the SPP, THC will be fully funded to ramp up production at Southport and have funds left over for working capital
- THC Global is trading 10.5 per cent lower today, with shares priced at 34 cents each
Cannabis pharmaceutical company THC Global (THC) has successfully raised $6.6 million in a placement to new institutional investors.
The money raised will be used to strengthen the company’s balance sheet and accelerate production at its Southport manufacturing facility.
Capital raising
The placement targeted new institutional investors to strengthen its share register with greater institutional representation.
Strong demand for the placement is a vote of confidence in THC’s plans for expansion through the remainder of 2020 and beyond.
Aside from the placement, THC will also offer a share purchase plan (SPP) to eligible shareholders.
Details of the plan are yet to be finalised, but shares will be offered at 30 cents each — the same price as the placement.
Shareholders will have the opportunity to buy up to $30,000 of shares, with further details available from June 25.
Higher and higher
With the successful completion of the placement, THC now has a consolidated cash balance of around $9.3 million.
The company’s goal is to supply cannabis medicines to 6000 patients by the end of 2020.
With the capital already raised, and more to come from the SPP, THC Global should be fully funded to ramp up production at Southport with enough working capital in the bank for a rainy day.
THC Global is trading 10.5 per cent lower today, with shares priced at 34 cents each as at 11:05 am AEST.