Asterion Cannabis Inc announced promising news Monday that it is raising C$25 million to fund the construction of a medicinal cannabis greenhouse in Queensland, Australia.
Proceeds raised will be used to construct about 40 hectares (99 acres) of "cutting-edge, secure, purpose-built greenhouses in Queensland, Australia, for the production of high-quality medicinal cannabis and for general working capital purposes," said the company in a release.
The Vancouver-based company is currently rolling out its ambitious project in southeast Queensland, to construct the world's largest purpose-built greenhouse cannabis production facility. The facility will cover a 4.3 million sq/ft site with an aim to ultimately have an annual capacity in excess of 500,000 kilograms.
The facility is expected to be developed in three stages: the first two stages each consist of a 10-hectare (25 acre) greenhouse facility and the final stage of two 10-hectare (25 acre) greenhouse facilities, with each stage including ancillary buildings.
Under the terms of the non-brokered private placement, up to 20 million units will be offered, priced at C$1.25 per unit, for gross proceeds up to C$25 million. Each unit will consist of one share and one share purchase warrant, with each warrant entitling the holder to purchase one additional share at a price of C$1.75 for a period of two years from the closing of the financing, subject to acceleration.
The company said finder’s fees may be payable on a portion of the financing, and all securities issued will be subject to a hold period of four months and one day in Canada.
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