Althea Group Holdings has raised $2m in a placement to support its expansion into the US cannabis beverage market with support from institutional and sophisticated investors along with key stakeholders in the sector.
AGH completes $2 million placement to support expansion into US cannabis beverage market and launch of additional product ranges in Canada
● Placement strongly supported by key strategic stakeholders within the US cannabis beverage industry
● Funds enable AGH to accelerate growth strategy and deliver on recent guidance for FY25, targeting revenue of $50-$60 million and EBITDA of $4-$7 million
Special Report: Althea Group Holdings has announced completion of a $2m placement to institutional and sophisticated investors to support its expansion into the US cannabis beverage market as it targets material financial growth in FY25 with EBITDA guidance of $4-$7m.
Althea Group (ASX:AGH) says it has received firm commitments from new and existing institutional and sophisticated investors to subscribe for ~101.3m new fully paid ordinary shares at an issue price of 2 cents/share to raise $2m (excluding fees).
The global manufacturer, seller and distributor of cannabis-based medicines and recreational cannabis products says it also garnered significant backing from key strategic stakeholders within the US cannabis beverage industry.
The new shares will be equal in status to the existing shares in the company with completion of the placement expected to happen on July 22, 2024.
Placement participants will also get one free option for every new share they buy. The options can be exercised at 3 cents each and will expire two years after they are issued.
The options will need to be approved by shareholders at a special meeting expected to be held in September 2024.
AGH plans to list these options on the ASX once all the requirements are met.
Alpine Capital acted as the sole lead manager and bookrunner for the placement.
