- Elixinol Global will issue 12.8 million shares at $3.90 each to raise roughly $50 million
- The funds will be used to expand Elixinol Global’s USA CBD business, particularly focussed at doubling the production capacity of its Colorado subsidiary
- The placement comes soon after Elixinol Global was granted a CBD processor licence and research authorisation by the New York State Government
Elixinol Global Ltd has completed a $50 million share placement to expand its USA cannabidiol (CBD) business.
Elixinol Global is a world leader in the cannabis industry, specialising in the production of hemp-based and hemp-derived dietary supplements, food and wellness products, and medicinal cannabis products.
Elixinol Global distributes these products through its three subsidiaries: Colorado-based Elixinol LLC, Hemp Foods Australia, and Nunyara Pharma.
Under the terms of the placement, Elixinol Global will issue roughly 12.8 million new shares at a price of $3.90 per share, which represents an 8.7 per cent discount on the last closing price of $4.30. The new shares make up over 10 per cent of Elixinol Global’s shares on issue prior to the placement.
Funding from the placement will be used to support the expansion of Elixinol Global’s USA CBD market, particularly expanding facilities in Colorado to roughly double the current production capacity.
Elixinol Global CEO Paul Benhaim said the placement received strong support from new and existing investors.
“We are witnessing an unprecedented positive shift in consumer appetite for CBD and hemp derived products. Elixinol plans to double its current production capacity in the US. Further, by securing additional raw materials, the company will be well positioned to accelerate the growth of Elixinol branded CBD products and strategic opportunities,” he said.
The placement comes soon after Elixinol Global was granted a CBD Processor Research Partner Authorization by the New York State Department of Agriculture Markets last month. This grant acts as a licence for Elixinol Global to scale operations and improve the efficiency of their CBD production in New York.
Elixinol Global shares were down 4.1 per cent as at 11:25am AEST today, trading at $4.10 per share in a market cap of $512.18 million.