Investing firm LGC Capital amassed over $2.6 million in gross proceeds at the first closing of its private placement, following the issuance of more than 26 million shares at $0.10 per unit.
The said units were sold to accredited local and international investors. LGC's senior executives and directors managed to secure an aggregate of more than 3.3 million units, paying $335,590.
The group is expecting to call a final closing balance of over 3.6 million units today, bringing the total amount raised to $3 million.
To recall, the LGC said it will be utilising the private placement proceeds to fund its new joint venture with AfriAg and with House of Hemp in South Africa.
"Funding will also be channelled towards seeking new medical cannabis investment opportunities elsewhere in southern Africa and in the Asia Pacific Region," LGC CEO John McMullen said in a statement released last month.
The group said each of the units includes one common share and one common share purchase warrant. The latter entitles the holder to acquire one additional LGC common unit at a price of $0.15 after one year from the closing date.
Additionally, the investment firm paid $93,200 in cash commissions and issued broker warrants to various securities dealers. Each warrant allows each holder to purchase additional shares at a price of $0.10 for a period of six months from the closing date of the private placement.