Asterion Cannabis Inc. today announced a non-brokered private placement of up to C$5mln and its plans to construct the world's largest greenhouse cannabis production facility in Queensland, Australia.
The company said the non-brokered private placement of up to 10 million units will be offered at a price of C$0.50 per unit for proceeds of up to C$5mln.
Each unit will consist of one common share and one common share purchase warrant, with each warrant entitling a purchase of one additional share at a price of C$1.00 per share for a period of 24 months from the closing of the financing.
The company said all securities under the financing will be subject to a hold period of four months and one day in Canada.
Cannabis production facility
The company also announced today its plans to construct the world's largest greenhouse cannabis production facility in Queensland, Australia.
The 4.3mln square foot facility (approximately 99 acres or 40 hectares) will be built in two phases of 20 hectares, each on land to be acquired by the company's wholly-owned Australian subsidiary.
The facility will be automated and powered by renewable energy and is expected to have annual cannabis production capacity in excess of 500,000kg.
The facility will include full extraction and processing equipment, as well as a research and development facility for the development of next-generation cannabis products.
The company said the new facility will "materially advance the agricultural science of medical cannabis and, to that end, the facility is intended to utilize state-of-the-art plant tissue culture ('PTC') technology that will eliminate the need for mother plants, provide a greater cultivation footprint, increase efficiency, lower costs and yield disease-free plantlets with genetically uniform strains."
Asterion said the Queensland government recognizes the benefits and opportunities that medical cannabis productions facilities can provide to the state and is committed to helping the company achieve its goals quickly.