Creso Pharma has secured firm commitments to raise A$5m to help fund its US expansion plans, issuing around 72.4 million new shares priced at $0.069.
The move follows Creso’s recent acquisition of Sierra Sage Herbs and its entry into the lucrative US CBD market.
The capital raised includes a commitment of around $318k from non-executive director and former chairman Adam Blumenthal subject to shareholder approval at a future general meeting.
The issue price represents a 10.4% discount on the last closing price of $0.077 on February 21, 2022.
CEO and managing director William Lay said: “We are very pleased to have achieved such strong support for this placement. These funds will provide us with additional financial flexibility to advance our US-focused growth trajectory, progress a number of new product development initiatives and explore new opportunities to unlock shareholder value.
“The company remains very well positioned to capitalise on the global market for recreational cannabis, CBD products and psychedelic treatments,” he added.
EverBlu Capital acted as lead manager on the placement.