Medicinal cannabis company Rua Bioscience needs to secure $3 million through a capital raise to keep the business operating and help increase sales.
After spending $37m over the past six years, the Tairāwhiti-based company was about to break even if it could raise the $3m, Rua Bioscience CEO Paul Naske said. The capital raise began on November 6.
The funds would go toward business expenses that included overheads and paying cultivators, and would be used as working capital to get stock and to sell more products, Naske said. "The sales are jumping up considerably in three markets of Germany, Australia and New Zealand and soon to be a fourth market, which is the UK."
The current revenue trajectory, along with new product offerings in key markets, had given the company confidence in its business plan and it was forecasting revenue of more than $3m by the end of the 2025 financial year.
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