Asterion Cannabis Inc., a Canadian firm with operations in Australia, announced a non-brokered private placement of up to 6,666,667 units at the price of C$1.50 per Unit, for aggregate gross proceeds of up to C$10 million. The company said it plans to use the money to build approximately 40 hectares (99 acres) of cutting-edge, secure, purpose-built greenhouses near Toowoomba in South East Queensland, Australia for the production of high-quality organic medicinal cannabis, and for general working capital purposes.
Asterion is focused on the future of advanced agriculture and aims to produce the highest quality of genetically uniform cannabis strains, at an affordable price. Just last week, the company said that it had received its licenses for the cultivation, manufacturing, and research of medicinal cannabis from the Australian Government’s Office of Drug Control.
“This is a major milestone for Asterion as it prepares to commence work on its industry-leading medicinal cannabis cultivation and processing facility near Toowoomba in South East Queensland, Australia,” said Mr. Stephen Van Deventer, Asterion’s Chairman, and Chief Executive Officer. “Asterion is delighted that it has passed through the ODC’s rigorous assessment process and been awarded the licences it requires to establish its flagship project. The ODC approvals represent a major step for Asterion towards the manufacturing of pharmaceutical-grade medicinal cannabis at our planned 75 ha (185 acre) Toowoomba Facility.”
Each Unit will consist of one common share in the capital of the Company (each, a “Share“) and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant“), with each whole Warrant entitling the holder thereof to purchase one additional Share at an exercise price of CAD $2.00 for a period of 24 months from the closing of the Financing, subject to acceleration. Finder’s fees may be payable on a portion of the Financing. All securities issued under the Financing will be subject to a hold period of four months and one day in Canada.
Van Deventer added, “Asterion intends to commence work on the Toowoomba Facility in the first quarter of 2020 and is expected to commence cultivation of its first crop in 2022. On completion, the Toowoomba Facility is expected to employ more than 1,000 people harvesting more than 20,000 plants a day, and to generate an estimated AUD $2 billion annually in exports, while also supplying medicinal cannabis to the Australian market. Asterion is committed to its program of innovation across the supply chain, with the goal of furthering the development of medicinal cannabis-based pharmaceuticals to provide a safe and effective treatment for a variety of medical conditions.”