Notice: Undefined index: width in /home/customer/www/stallingsnewsvoice.com/public_html/wp-content/plugins/all-in-one-seo-pack/inc/schema/graphs/graph.php on line 244

Notice: Undefined index: height in /home/customer/www/stallingsnewsvoice.com/public_html/wp-content/plugins/all-in-one-seo-pack/inc/schema/graphs/graph.php on line 245

Notice: Undefined index: width in /home/customer/www/stallingsnewsvoice.com/public_html/wp-content/plugins/all-in-one-seo-pack/inc/schema/graphs/graph.php on line 244

Notice: Undefined index: height in /home/customer/www/stallingsnewsvoice.com/public_html/wp-content/plugins/all-in-one-seo-pack/inc/schema/graphs/graph.php on line 245

Cannasouth raises $6m to accelerate growth plans

Cannasouth has raised $6 million from its share purchase plan to accelerate its growth plans, including a new supply deal for ‘white label‘ cannabis.

The biopharmaceutical research and development company sold 15.8 million shares 38 cents apiece, a 20.7 per cent discount to the five-day volume weighted average price. The shares rose 8.7 per cent to 50 cents in early trading today.

The original SPP, announced on 15 April, aimed to raise up to $5m from existing Australian and New Zealand shareholders who could apply for up to $50,000 of new shares each. In the event, it raised $5.69m and another $334,839 from several wholesale investors.

Chairman Tony Ho said the company was delighted with the positive support, given the challenging environment as “testament to the belief shareholders have in Cannasouth and a reflection of the sound progress Cannasouth has made to date in implementing its business strategy.”

Advertisement

The company also announced it has entered into a supply agreement with MediParm Labs Australia, a subsidiary of Canadian company MediPharm Labs, for the supply of white label medicinal cannabis products into the local market under the newly announced New Zealand Medicinal Cannabis Scheme.

Cannasouth chief executive Mark Lucas said the agreement was and a “great first step in entering the market by supplying prescribers and patients with a range of affordable, quality pharmaceutical-grade medicinal cannabis products.”

The agreement gives Cannasouth exclusive rights to the formulation and dosage forms set out by MediPharm for the next two years.

Cannasouth said the arrangement remained conditional on regulatory approvals and insurance.

At this early stage, the company said it was “unable to provide revenue estimates” for products sales.

The new shares are expected to be allotted on Thursday.

Related posts

NZ shares rise in late rally as blue chips gain

New Zealand shares rose as a strong rally in Australia helped overcome the subdued tone set over the weekend, and…

Read More

NZ dollar see-saws on US-China tensions, trans-Tasman bubble plans

The New Zealand dollar dropped from Friday‘s close before rising on optimism that a trans-Tasman bubble with Australia may allow…

Read More

Markets drop in Asia with rising China-U.S. tensions over virus

TORONTO — Stock indexes are down slightly in midday trading on Wall Street Monday, as the market takes a pause following its…

Read More

Join The Discussion

Search

Compare listings

Compare