AusCann (ACNNF)

[OSOROJO]

Medical cannabis group AusCann is in the market today raising $10 million to fund a joint venture with a global partner, TasAlk.

Merchant Corporate Advisory is the lead manager and sole bookrunner for the deal which could be increased if there is investor demand.

A term sheet seen by DataRoom shows a share placement will be carried out at 50c a share, compared to AusCann’s (AC8) closing price of 58c.

The funds will be used to grow and manufacture medicinal cannabis under a new partnership with TasAlk, a global opiate ingredient manufacturer for pain medicine.

TasAlk already has some operations in Australia and the funds today will also help AusCann roll out its Australian doctors training program. The doctors will be trained in how to use the medicinal cannabis for pain control and palliative care. “The pain market in Australia for medical cannabis is expected to be substantial,” the term sheet says.