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ECS Botanics (ASX:ECS) - Managing Director & Founder, Alex Keach
Managing Director & Founder, Alex Keach
Source: The Mercury
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  • Medicinal cannabis company ECS Botanics (ECS) has received firm commitments to undertake a $4 million share placement
  • Shares will be issued to sophisticated and professional investors at 5 cents, a 17 per cent discount to the company’s closing price of 6 cents on March 11
  • ECS has stated it will also undertake a rights issue to raise an additional $2 million with participants to receive one new share for every 17 held
  • The company will use the money to complete the acquisition of Murray Meds, purchase plant and equipment upgrades and speed up market penetration, revenue and growth
  • ECS is down five per cent on the market this morning and shares are trading at 5.7 cents

Medicinal cannabis company ECS Botanics (ECS) has received firm commitments to undertake a $4 million share placement.

The company entered a trading halt last week but did not disclose how much it would be raising or what it would use the funds for.

Shares will be issued to sophisticated and professional investors at 5 cents, representing a 17 per cent discount to ECS’ closing price of 6 cents on March 11 and a 19 per cent discount to the five-day volume-weighted average price.

ECS has stated it will also undertake a rights issue to raise an additional $2 million.

Shares will be priced the same as the placement with participants to receive one new share for every 17 held.

Shares are expected to begin trading on the ASX on March 24.

ECS will use the funds to complete the acquisition of Murray Meds, purchase plant and equipment upgrades, and to speed-up market penetration, revenue and growth.

Once the acquisition of Murray Meds is complete, Founder Nan-Maree Schoerie will join the ECS board as an Executive Director.

Nan-Maree has held several leadership positions across a range of organisations with the likes of ThermoFisher, Ventia and GE.

“Having received shareholder approval for our acquisition of Murray Meds, we are excited to complete this transaction which positions ECS as the largest, lowest cost and most geographically diverse cannabis producer in Australia,” Managing Director Alex Keach said.

“Funds raised will provide us with additional working capital during our busiest ever period as we pursue overseas market opportunities to accelerate revenue growth,” he added.

ECS is down five per cent on the market this morning and shares are trading at 5.7 cents at 11:12 am AEDT.

ECS by the numbers
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