Creso Pharma has secured commitments to raise up to A$7.6m through the issue of two separate convertible notes.
The funds will be used to support marketing and sales of the company’s existing products in Canada, Europe, and the US, advance psychedelic arm Halucenex’s Phase II clinical trial, review and complete potential M&A opportunities, and for working capital.
The new funding includes commitments from new and existing professional investors to raise $2.6m through the issue of secured convertible notes and an additional agreement with New York-based asset and fund manager Obsidian Global to raise up to $5m via convertible notes.
Subject to shareholder approval, former director and related party Adam Blumenthal has committed to participate in the secured convertible note offer for $500,000.
CEO and managing director William Lay said: “We are very pleased to have secured additional funding from new and existing investors…We are also pleased to have commenced this relationship with Obsidian.
“Obsidian has a successful track record of supporting ASX-listed growth companies and we believe that the financing provided by both convertible notes will allow us to continue progressing various opportunities being presented in the current macroeconomic environment.”
Meanwhile, in its quarterly update to the ASX, Creso reported total group revenue of A$2.05 million, a 77% increase on the previous corresponding period and up 31% on the last quarter.
The Q3 revenue performance takes the firm’s unaudited year-to-date revenue to A$6.37m, already exceeding CY21’s record 12 months.
Creso said its proposed acquisition of Health House International would underpin international expansion and further revenue growth. Health House generated $4.6m in cash receipts during the quarter, driven by a strong revenue performance in Australia.