Australian Cannabis Producer AusCann Raises $12mm

cgc-partner-auscann

AusCann Secures $12 Million In Institutional Placement

19 May 2017

Highlights

  • Successful Placement raising $12 million with strong interest from new institutional
    investors both domestic and global
  • 24,000,000 shares to be issued at 50 cents a share, representing a 16% discount to
    the five day VWAP of 59.6 cents per share
  • Cornerstone investments from AusCann’s strategic partner Canopy Growth Corporation and leading Australian fund manager Tribeca
  • Funds to be applied towards development of cultivation and manufacturing activities
    and accelerating its medical outreach programme

AusCann Group Holdings Ltd (ASX: AC8) (OTC: ACNNF) (or “the Company”) is pleased to announce it has successfully raised $12 million (before capital raising costs) via a Placement to institutional and high net worth investors.

The Placement, managed by Merchant Corporate Advisory Pty Ltd, received strong interest from existing and new investors, both domestically and overseas. This demonstrates the high market demand for the company and validates AusCann’s strategy as an Australian-based and globally connected player in the medicinal cannabis sector.

Canopy Growth Corporation, North America’s leading cannabis producer and AusCann’s
strategic partner, participated in this placement maintaining their shareholding at
approximately 11%. Canopy’s investment was complemented by strong interest from a
range of other institutional investors including leading Australian fund manager Tribeca
Investment Partners.

The Company will issue 24,000,000 shares at $0.50 per share, representing a 16% discount to the five day VWAP of 59.6 cents per share. The shares will be issued under the Company’s available ASX Listing Rule 7.1A capacity. The issue of the 24,000,000 shares is expected to occur within the next week.

This capital raising follows on from its exclusive strategic partnership with Tasmanian
Alkaloids (“TasAlk”), announced 17 May 2017, whereby the two groups will work together to
exploit global market opportunities for the supply of high quality medicinal cannabis
products. This partnership will seek to leverage the respective competencies of both
AusCann and TasAlk and is believed to be the first industry partnership of its type.

The funds raised will be used to progress the development of the Company’s cultivation
facility in Western Australia, following the recent approval of its Australian medicinal cannabis licence by the Office of Drug Control, under the Narcotic Drugs Act 1967.

Furthermore, the funding will progress the development of its activities in Chile with its joint venture partner DayaCann and expand its medical outreach activities among the medical community in Australia. AusCann is committed to improving the general awareness and education of the benefits of medicinal cannabis to the medical community specifically and the broader community in general.

The strong support we have received for this capital raising continues to demonstrate the high level of investor interest in the medicinal cannabis sector in Australia. The move by the Australian Government to introduce a legal framework provides the foundation for us to advance our strategy to supply high quality and affordable medicinal cannabis to patients in need.

Elaine Darby Auscann GroupElaine Darby, Managing Director, AusCann

“Our Australian medicinal cannabis license and recent partnership with Tasmanian Alkaloids have been major milestones, advancing our development in the Australian market. We have access to expert knowledge, facilities and unrivalled skills through a range of global partnerships that give AusCann a real and sustainable competitive advantage in the market.”

Canopy Growth Corporation, North America’s leading cannabis producer and AusCann’s strategic partner, participated in this placement maintaining their shareholding at approximately 11%. Canopy’s investment was complemented by strong interest from a range of other institutional investors including leading Australian fund manager Tribeca Investment Partners.

Bruce Linton Canopy Growth CEOMr Bruce Linton, Chairman and CEO, Canopy Growth Corporation

ABOUT AUSCANN GROUP

AusCann is an Australian based company that was incorporated in September 2014 with the aim of producing and providing high quality, affordable and clinically validated cannabis medicines to patients. It is bringing together leading expertise and operations across all  aspects of the medical cannabis value chain, beginning with cultivation and production, through to manufacture and distribution of products and has built a strong team of experts and partners across the globe. Partners include: TSX listed Canopy Growth Corporation – the largest producer of medicinal cannabis globally; DayaCann – the only licensed medicinal cannabis grower in Chile; and Tasmanian Alkaloids, producer of ~40% of the world’s alkaloid raw material.

Original press release: http://clients3.weblink.com.au/pdf/AC8/01858750.pdf

Published by NCV Newswire
NCV Newswire
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