Asterion Cannabis Inc has announced a brokered private placement to raise up to C$10 million.

In a statement Wednesday, the company said it intends to use the proceeds to finance pre-construct costs for about 40 hectares (99 acres) of cutting-edge greenhouses in Queensland, Australia, to produce high-quality medicinal cannabis. 

Asterion said the money also will help it execute its early revenue strategic plan and list its shares on a recognized stock exchange while providing general working capital.

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Under the terms of the financing, Vancouver-based Asterion is offering nearly 6.7 million units at C$1.50 per unit.

Each unit will consist of one common share and one half a common share purchase warrant, with each warrant entitling the holder to purchase one additional share at C$2 each for a period of 24 months from the closing of the financing. All securities will be subject to a hold period of four months and one day in Canada.

Asterion, a private company, has engaged First Penny Investments Pty Ltd as the agent for this financing. Its an Australian advisory firm with a global footprint in merchant banking that helps maximize the potential of emerging and high growth companies through the execution of business and capital strategy and the forming of strategic relationships.

“We are very excited to be working with First Penny Investments in securing equity funding for this pre-construction phase,” said Asterion CEO Stephen Van Deventer. “With this funding, we will be able to implement our early revenue plan, complete the pre-construction requirements and start the IPO process.”

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