Epsilon Healthcare has raised A$1.65m in capital with chief operating officer Sonny Didugu and former chief executive Jarrod White participating in the raise.
The much-needed injection of funds comes after the company conceded there was “material uncertainty” surrounding its future after a difficult six months.
Losses for the period climbed 94% to $8.08m.
Epsilon said the cash would be channelled into its Southern facility to fund the “working capital and inventory ramp up aligned with expanding operations and customer base”.
Executive chairman Steven Xu said: “We are pleased to have secured this additional capital in tough market and economic conditions with support from both new and existing investors.
“This additional working capital will assist the company in further advancing its domestic medicinal cannabis operations, building further on the significant progress made in H1 2022.”
The placement was completed at $0.0275 per share, a 16% discount on the share price at the time Epsilon went into a trading halt on Wednesday.
It was not immediately clear how much Didugu and White had invested.
The company said early applicants to the raise were given priority in order to accelerate the arrival of funds.
“[It] was considered important to encourage speedy completion of the placement in volatile markets, and with a view to having a range of both existing investors as well as introducing new investors to the company,” it said in a statement to the ASX.
Despite the uncertain picture, directors stressed in the interim report there were “reasonable grounds” for believing the firm would continue as a going concern.
