Cannabis companies hit new high with fresh capital

Cannabis companies hit new high with fresh capital

Two of Australia's leading listed cannabis players have raised millions in funds to boost their businesses in Australia and overseas.

Botanix Pharmaceuticals (ASX: BOT), a medical dermatology company combatting serious skin diseases with cannabis-based products, has successfully completed an oversubscribed placement to raise $8 million.

The placement resulted in the issue of 72.7 million shares at an offer price of $0.011 per share a discount of 8.3 per cent.

The placement will help the company move into the next stage of research and product development according to Botanix executive director Matt Callahan.

"Botanix is now in a strong position with two fully funded Phase 2 ready programs moving into the clinic, multiple pipeline products progressing into Phase 1b patient studies in the near term and a novel technology platform," says Callahan.

The funds from the oversubscribed placement will be used primarily to advance the group's activities into the next stage.

RotoGro (ASX: RGI), an Australian-based hydroponics company, has also scored a significant injection of capital with $4.56 million raised in its latest fully-subscribed capital raise.

The capital raise will allow RotoGro to fast-track the pursuit of strategic acquisitions in lawful cannabis licenses, nutrients and perishable foods by way of equity ownership or partnership.

The company is also looking at expanding its research and development facility in Caledon, Ontario, Canada, and bolstering its sales and management teams.

Michael Carli, the company's managing director, says the funds will assist the company fulfilling its aspirations.

"Our aspirations to be a leading lawful cannabis and perishable food grower, drawing on our patented and patents-pending technology and proprietary growing management software, sets us apart from all other methods of growing," says Carli.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Get our daily business news

Sign up to our free email news updates.

 
Finexia’s Childcare Income Fund secures ‘very strong’ rating from Foresight Analytics & Ratings
Partner Content
Private credit specialist Finexia Financial Group (ASX: FNX) has secured a “very...
Finexia
Advertisement

Related Stories

Nicholas Bolton's Keybridge becomes majority owner of Yowie

Nicholas Bolton's Keybridge becomes majority owner of Yowie

Despite a recommendation from the independent directors of confecti...

‘State of war’: the battle behind the scenes that led to a second inquiry into The Star

‘State of war’: the battle behind the scenes that led to a second inquiry into The Star

A siege mentality that amounted to a “state of war” bet...

Global conflicts spark surge in revenue for Sydney defence-tech DroneShield

Global conflicts spark surge in revenue for Sydney defence-tech DroneShield

With $400 million worth of annual hardware production value in mark...

NEXTDC secures $937 million from institutional offer

NEXTDC secures $937 million from institutional offer

NEXTDC's (ASX: NXT) massive raise to speed up the development a...