- Hemp-derived CBD producer Elixinol Global (EXL) has successfully raised $8.2 million in extra working capital via a share placement
- Under the offer, institutional and professional investors were offered over 48 million shares worth 17 cents each
- The company has also flagged launching a share placement plan (SPP), to give shareholders a chance to pick up an additional $2 million worth of shares
- The recent placement offered to investors will settle on November 19, while the SPP will open the following day on November 20
- Shares in EXL remain unchanged today, priced at 18.5 cents
Elixinol Global (EXL) has successfully raised $8.2 million in extra working capital via a recent share placement.
The hemp-derived CBD producer first announced plans to raise additional equity late last week, when it entered a trading halt.
It's since completed the placement, receiving strong support from both new and existing institutional and sophisticated investors.
Under the terms of the placement, each new share was priced at 17 cents each — an 8.1 per cent discount to the last traded price of 18.5 cents each.
Over 48 million shares will be issued in total, with the shares expected to be settled on November 19.
Along with the placement, Elixinol has announced it will also offer shareholders a chance to buy additional shares via a share placement plan (SPP).
Eligible shareholders are invited to subscribe for up to $30,000 worth of new share, worth 17 cents each, with the offer to open on November 20.
The initial aim is to raise $2 million via the SPP, however, the company may increase or scale back the offer depending on the response.
EXL Executive Director and Group CEO Oliver Horn has thanked investors for their support thus far.
"This funding will be instrumental to Elixinol as we continue to move the Company towards a cash flow positive position - we have recently made significant progress and I feel very positive about the long term prospects for the company," he said.
Shares in EXL have ended the day unchanged, worth 18.5 cents each.