<article>ASX-listed medical cannabis firm <a href="https://www.dealstreetasia.com/?s=AusCann">AusCann Group Holdings Ltd</a> has successfully completed the placement of 30.4 million shares that netted the company A$33.4 million ($25 million) in fresh capital.</article>

ASX-listed medical cannabis firm <a href="https://www.dealstreetasia.com/?s=AusCann">AusCann Group Holdings Ltd</a> has successfully completed the placement of 30.4 million shares that netted the company A$33.4 million ($25 million) in fresh capital.
In a disclosure to the Australia Securities Exchange, AusCann said the placement was made to investors from North America and Australia, including AusCann&#8217;s major shareholder, <a href="https://www.dealstreetasia.com/?s=Canopy%20Growth Corporation" target="_blank" rel="noopener">Canopy Growth Corporation</a>, which, following completion of the placement, will increase its ownership to 11.2 per cent.
The placement represents 30.4 million new fully paid ordinary shares in AusCann under an issue price of A$1.10, an 11.7 per cent discount on the weighted average price of its shares over the 15-day prior period of trade.
Based in Australia, AusCann seeks to produce clinically validated cannabinoid medicines. It initially targets medications for neuropathic and chronic pain in Australia and Chile, while exploring global export opportunities.
The company intends to use the funds raised to finance clinical studies for product registration in Australia, expansion of its manufacturing plant, the establishment of a manufacturing facility in Chile, and the establishment of medical outreach programs in new international markets, among others.
&#8220;The capital we secure from this raising will enable us to accelerate our corporate objectives and provide Australian and global markets with the efficacious, clinically validated and cost-effective medicinal cannabis products,&#8221; said AusCann managing director Elaine Darby.
AusCann also informed the ASX of its intention to undertake a share purchase plan (SPP), following the placement, to raise up to A$8 million ($6 million). The company, which has over 21,000 subscribers on its register, said investors who participate in the placement will be eligible to participate in the SPP.
A Bloomberg report last year said the global cannabis industry is forecast to reach a market capitalisation of $50 billion by 2026, helped by an increased interest among academic researchers and healthcare providers about the therapeutic uses of marijuana.
Some of its potential therapeutic values are suppression of vomiting and nausea, pain relief, and appetite stimulation. In addition, research states that marijuana is effective in providing relief to patients suffering from HIV/AIDS, glaucoma, cancer, and multiple sclerosis.
&#8220;We believe Australian patients have the right to access high quality, cost-effective, cannabinoid medicines,&#8221; AusCann says on its website.
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Medical cannabis firm AusCann Group Holdings Ltd has successfully completed the placement of 30.4 million shares that netted the company $25 million in fresh capital.

Australia's medical cannabis firm AusCann raises $25m via placement

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Australia's medical cannabis firm AusCann raises $25m via placement

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