Medicinal cannabis firm Cannasouth is poised to become NZX's first initial public offering in two years and is touting its ability to secure licences and strong relationships with regulators as selling points.
The Waikato-based company wants to raise $5 million from invited investors and another $5 million in a public offer, selling as many as 20 million shares at 50 cents each. Provided it gets at least $5 million, Cannasouth intends to list on the NZX in what will be the stock market's first IPO since Oceania Healthcare went public in May 2017.
The company filed its product disclosure statement with the Companies Office on Friday and said it plans to use the funds raised for research and development, investigating sites to build commercial operations, take on staff, and cover the cost of the offer and listing. It would also boost its working capital.
Fat Prophets head of research Greg Smith has invested in the company in his personal capacity and also intends to participate in the offer.
Cannasouth has so far secured licences to cultivate, extract, import and purify medicinal cannabis and cannabinoids for research purposes. It has also secured two import licences, which are needed every time the company wants to import a cannabis product.
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