THC BioMed Intl Ltd has secured a commitment of up to $12 million in funding from Alumina Partners, a U.S. private equity firm. Based in Kelowna, British Columbia, THC is a provider of scientific research, plant innovation and product development for the medical cannabis industry. The commitment, which brings the company’s total available resources to $22 million, will be used for expansion, marketing and working capital. Earlier this year, THC acquired Clone Shipper LLC, a U.S. specialist in packaging products for the transportation of live plants.
THC Signs Capital Commitment of $12,000,000 (twelve million dollars), with Alumina
VANCOUVER, Aug. 11, 2017 /CNW/ – THC BioMed Intl Ltd (“THC” or the “Company”) (CSE: THC) is pleased to announce that following a commitment with Alumina Partners (Ontario) Ltd. (“Alumina”) for up to $12,000,000 (twelve million dollars), the Company has issued 483,870 units to Alumina (the “Units”) at a price of $0.31 per Unit for gross proceeds of $150,000 (the “Private Placement”) as part of the draw down facility. Each Unit consists of one common share (“Private Placement Share”) and one common share purchase warrant (“Warrant”). Each whole Warrant entitles Alumina to purchase one common share of the Company for a period of 36 months from closing at a price of $0.3875 per common share. Proceeds will be used for business expansion, marketing and general working capital.
This financing has been structured to best suit the fast-growing Cannabis Industry. Alumina has structured the terms so that funds may be drawn on an as needed basis, allowing THC to finance as it achieves milestones on an upward trajectory.
“While growth is necessary in a fast-moving industry like we are witnessing, quick access to capital is essential. However, we continue to remain conscious of dilution and look towards revenue generation and profitability to finance our growth only using financing as a last resort”, commented John Miller, THC Biomed President and CEO. “This is the second capital commitment we have entered into giving us access to $22 million dollars.”
“We were impressed by THC Biomed’s decisive execution on their corporate vision, quickly closing on their Clone Shipper acquisition while simultaneously laying the groundwork in preparation for becoming the wholesaler of choice of live clones to the expected home growers’ market,” said Adi Nahmani, Managing Member of Alumina Partners. “If realizing the potential in this new market revolves around taking calculated risks, we’re eager to see what the future holds for THC.”
THC’s vision is to be on the leading edge of scientific research, development of products and services related to the medical cannabis industry while creating a standard of excellence. As the industry develops, it will become more important to focus on scientific research and development of products and services related to medical cannabis. Management believes THC is well-positioned to be in the forefront of this rapidly growing industry.
Please visit our website for a more detailed description of our business and services available. www.thcbiomed.com
For further information: President and CEO: John Miller, THC Biomed Intl Ltd., T: 1-844-THCMEDS, E: email@example.com
Photo courtesy of Reuters/Anthony Bolante