Cannabis producer ECS Botanics (ASX:ECS) is undertaking a $6 million capital raising to help it complete the acquisition of Victorian cultivator Murray Meds.
ECS has completed the transaction of Murray Meds, a fully licensed medical cannabis cultivation and GMP manufacturing facility in north-western Victoria.
The $6 million capital raising which consists of a $4 million placement and a $2 million rights issue, comes only a fortnight after ECS shareholders overwhelmingly approved the acquisition.
“We are excited to complete this transaction which positions ECS as the largest, lowest cost and most geographically diverse cannabis producer in Australia,” ECS managing director Alex Keach declared.
“Funds will provide us with additional working capital during our busiest ever period as we pursue overseas market opportunities to accelerate revenue growth.
“Unlike the majority of Australian companies, we are supplying customers using 100 per cent Australian grown and manufactured ECS cannabis, not imported cannabis.”
Keach also mentioned ECS expects to execute additional sales agreements and partnerships and expand its Victorian and Tasmanian operations over the next six months.
Murray Meds is unique among Australian cannabis companies as it grows cannabis semi-protectd and outdoors which is lower cost than the traditional indoor growing facilities used by most companies.
It has a permit to cultivate 3,500kg with a production cost as low as 60 cents per gram.
Keach says the deal now puts his company in a very strong unique position.
This article was developed in collaboration with ECS Botanics, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.