Australian marijuana company Elixinol Global has raised $50 million to fund its expansion in the United States, including the doubling of its production capacity in Colorado.
The ASX-listed company said on Wednesday it had completed an institutional placement and would issue 12.8 million shares at $3.90 a share, an 8.7 per cent discount to Monday’s closing price.
The money will be used to expand its production facilities in Colorado by another 23,000 square feet (2,136 square metres), general working capital and “opportunistic strategic acquisitions” and joint ventures.
In April Elixinol spent $US6.3 million ($A9m) to buy a quarter-stake in US-based company Pet Releaf, which makes CBD oil products for cats and dogs.
Bell Potter Securities acted as lead manager to the placement, as it did with one last September that raised $40 million for Elixinol at a $1.85 share price.
At 1437 AEST Elixinol shares were down 19 cents, or 4.45 per cent, to $4.08, having more than quadrupled since Elixinol debuted on the ASX in January 2018 for $1 a share.
The company produces cannabidiol (CBD) oil supplements and skincare, hemp food and medical cannabis.
Its lines of 45 different dietary supplements bring in the most revenue, $32.5 million last fiscal year.
The company’s headquarters are in Sydney and it has operations in NSW, the USA and Japan.
Last month it was granted a permit by New York State to that allows it to process CBD and hemp.