Cannabis play Bod just raised $6.4m and its shares are popping
Cannabis play Bod is making strong gains this morning after raising $6.4 million to fund global expansion.
Bod Australia (ASX:BDA) — which makes a range of vitamins and hemp-based cosmetic products — raised the cash in a private placement at 53c per share.
On Friday morning the shares jumped 11 per cent to an intraday high of 66.5c, before settling back to 60c by Friday’s close.
BOD reported a loss of $3.7 million last year on revenue of $1.2 million. The business has a market cap of $27 million.
The money will go towards global expansion — with a particular focus on China — and local marketing following the completion of Phase I clinical trials for Bod’s cannabis wafer.
Bod kicked off I trials of the wafer in July — paving the way for the company to test its impact on everyone from multiple sclerosis patients to those with anxiety.
(Clinical trials are generally divided into three phases. Phase 1 focuses on safety, Phase 2 tests for effectiveness and Phase 3 examines whether a new drug is an improvement on existing treatment.)
The so-called “sublingual wafer” — designed to dissolve under the tongue — contains Bod’s in-house cannabis extract ECs315.
“The company remains focused on the completion of its Phase I Clinical trials and the opportunities which may present themselves following a successful conclusion, as well as securing additional market share for our range of leading health and wellness products,” Bod chief Jo Patterson said.
“I look forward to updating shareholders on operational progress and other developments shortly.”