Cannasouth has successfully closed its renounceable rights issue offer to shareholders, with approximately 9.9 million new shares taken up, raising $1.4 million.
Of the total, 3.9 million shares were taken up by eligible shareholders, raising $544,185.
The company also received applications for $845,969 in oversubscriptions.
The settlement, allotment, and trading of the new shares are expected to occur by 15 December 2023.
In addition to the rights offer, Cannasouth launched a wholesale offer of secured convertible notes to raise up to $5 million.
$1 million of notes were already issued to three CBD directors, and the company is in discussions with other investors for further participation in the notes offer.
The funds raised from the rights offer and notes are intended to provide working capital until the company generates revenue from its products, which were recently verified by the Medicinal Cannabis Agency.See more