ECS Botanics has received firm commitments to raise A$6.6m through the issue of 200 million new shares at 3.3c each.
The company told the ASX the funds will be used to rapidly accelerate its growth plans to meet surging demand for its medicinal cannabis and hemp products.
It will again progress the purchase and installation of additional protected cropping enclosures for premium dry flower in a bid to boost production capacity and revenue.
ECS will also use the capital to:
- expand its drying room capacity, which is anticipated to yield 4,000kg this financial year;
- automate trimming and packing processes, leading to a reduction in staff costs and increased profit margin;
- finalise the acquisition of Murray Meds;
- increase investment in its Environmental, Social, and Corporate Governance (ESG) strategy as it pushes towards net zero emissions.
Managing director Alex Keach said: “ECS has witnessed a significant increase in demand for its products from the Australian market and large international groups and this capital will allow the company to significantly scale up operations to meet the growing sales pipeline.”