CEO Jeffrey Renwick said the firm is 'on the doorstep' of full-scale manufacturing of medical cannabis in pill form.
Canntab Therapeutics Limited () (OTCMKTS:CTABF) CEO Jeffrey Renwick told shareholders on Thursday that the firm is “on the doorstep” of full-scale manufacturing of medical cannabis in pill form.
The CEO’s comments came as the Toronto-based company announced plans to raise around C$2.5 million to help fund the company’s near-term growth and expansion plans.
"We accomplished the goals that we set out for ourselves almost 2 years ago, and we are now at the doorstep for the full-scale manufacturing and distribution of our innovative medical cannabis solutions,” Renwick said in a statement.
READ: Exactus and Canntab team up to produce and sell hemp-derived cannabinoid tablets
The firm is launching a private placement of up to C$2.5 million worth of units, subject to the company's over-allotment option to increase the size of the private placement by up to an additional C$1.5 million, at a price of C$0.50 per unit. Each unit consists of one share and one full warrant to acquire additional shares at a price of C$0.75 per share for a period of two years.
Canntab outlined a number of plans for the proceeds of the private placement, such as a planned expansion into Florida through a joint agreement with Exactus Inc to manufacture a CBD hard pill for distribution throughout the US.
It is also conducting a trial with the University of British Columbia to research the effect of Canntab's bi-layered CBD/THC controlled release formulations for post-operative pain care, and a blood level study looking at Canntab’s solid oral dose formulations.
Other funds will go towards expanding the firm’s Ontario facility and testing of new products as well as general working capital.
“The proceeds from this private placement will strengthen our balance sheet (which remains without any long term debt) and will allow us to take advantage of the opportunities we've cultivated, and will establish Canntab as the premiere solution for medical cannabis in Canada, and across the world,” CEO Renwick said.
Canntab said it may issue finder’s fees of up to 7% of gross proceeds.
Shares of Canntab were trading 6.5% higher in Canada at C$0.49 and at US$0.37 over the counter on Thursday afternoon.
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