Medicinal cannabis company Cannaponics has made West Australian crowdfunding history for a second time by hitting the maximum of $5 million in its crowdfunding campaign via facilitator Birchal, closing the round out with 2,771 Australian investors.
The medicinal cannabis firm’s raise is the largest equity crowdfunding campaign for any WA-based company and comes two weeks after Cannaponics smashed local records by securing $3 million from investors in just 24 hours.
Headquartered in the mining town of Collie, WA, Cannaponics boasts 67ha of land for cannabis cultivation and a 3,600sqm greenhouse that uses radiant energy vacuum technology (REV) to dry its cannabis flowers.
Cannaponics plans to use the fresh capital to complete the construction of its biotech facility at Collie and build a 1-megawatt solar energy farm which will bring the company closer to kickstarting production.
“We’re blown away by the response from our investors,” Cannaponics CEO and founder Rod Zakostelsky said.
“We’re a feel-good company and want to do things differently.
“Everything – from our sustainable operations to our hiring approach to our pursuit of creating an affordable supply chain for customers – is built around the idea that we want to lift the industry up, and be the Australian leaders in both quality and quantity.”
With the support of more than 2,700 investors, Zakostelsky said Cannaponics would now be able to accelerate the development of its existing site to match demand in Australia for medicinal cannabis. With Australian prescriptions predicted to reach 30,000 kg by 2024 – half of which has traditionally been imported – Cannaponics is focused on bringing production back to Australia.
“We have the team, the tech and the expertise to change the industry and now we have the backing of more than 2,770 Australian investors to make it happen soon,” Zakostelesky said.
“We’re so thrilled with the results and so happy to welcome our new investors.”
Birchal CEO and founder Matt Vitale said the strength of Cannaponics raise was a positive indicator in an ‘increasingly active market’.
“Any reluctance earlier in the year about whether it was a good time to raise has been well and truly quashed with Cannaponics' incredible results,” Vitale said.
“We’re seeing large numbers of investors motivated to back Australian innovators like Cannaponics as they carve out opportunities in growth industries, like plant-based medicines.
“Maxing out at $5m is both testament to the hard work and entrepreneurialism of the Cannaponics team, and a sign of broader market interest in the category.”
Success in the raise comes after Cannaponics last year announced plans to collaborate with Mauritius-headquartered medical supplier Avacare to develop a pharmaceutical manufacturing facility at Collie, including options to export its products and investigate new uses for hemp.
The companies are also investigating the potential for hemp to replace petroleum-based plastics and textiles needed to manufacture PPE (personal protective equipment) and various medical devices.
Cannaponics also plans to leverage renewable energy resources to produce premium quality medicinal cannabis at a large scale, with an exclusive license to manufacture a nanoemulsion formulation.
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