Australian medical cannabis company Cannaponics has reached and well-exceeded its latest crowd-sourced funding (CSF) campaign minimum target, with still 6 days left to go.
Cannaponics presents itself as a green cultivator of medicinal cannabis, using 100% renewable energy and rainwater harvesting for its 165-acre site in Western Australia that boasts a 4,000sqm greenhouse and manufacturing facility. The greenhouse is now fully outfitted and the 15-million-litre dam has been completed.
The company says it has also secured offtake agreements locally and internationally, and has secured contracts for distribution with two of Australia’s largest cannabis wholesalers. One of the firm’s claims to fame is an 8-hour harvest-to-shelf production capability.
“We have one of the lowest cost of goods in the industry in Australia, thanks to our expertise, technology and renewables powering our site,” states Cannaponics. “We’re set to meet EU-GMP compliance standards this year, validating us as world-class producers.”
Last year, the company launched a crowdfunding campaign, achieving its maximum target of AUD $5 million. Cannaponics has tapped the crowdfunding scene again this year, looking to raise a minimum $250,000. At the time of writing, it had raised more than $1.39 million from 918 investors, with 7 days left to go. The first day saw investment of more than $750,000. The company is offering up to 7,500,000 shares at an issue price of $0.40 per share to raise up to $3,000,000.
“We’ve been absolutely blown away by the amount of investment support we’ve received so far.”
The funds are to be used to complete the setup of its manufacturing facility and in-house laboratory, including validation of its EU-GMP manufacturing arm. If it is able to hit the maximum target, the company expects the funds to be sufficient to meet Cannaponics’ short-term objectives over the next 12 months.
“If this CSF Offer is unsuccessful, or if only the Minimum Subscription amount is raised, the Company will require further funding to be able to carry out our intended activities over the next 12 months.”
Among Cannaponics’ backers is the Western Australian government, which has previously provided $2 million. The company has also raised a further 10 million dollars privately.
Crowdfunding has been successfully used by a number of legitimate cannabusinesses to raise capital given the challenges of seeking cash via other sources. But as with any investment, investors should be cautious and do their due diligence.
