In an announcement released after the market close on Wednesday, the cannabidiol (CBD) specialist said it raised the funds through the issue of around 56.6mln shares at a price of 1p each, a 65% discount to its closing price on Wednesday, with subscribers also receiving one share purchase warrant for every share subscribed for, exercisable at a price of 1p each for the next two years.
The company said Andrew Male and Robert Payment, two of its executive directors, subscribed for 4mln and 350,000 shares, respectively and will now hold stakes in the firm of 1.6% and 0.5% respectively.
Meanwhile, the company reported that revenues for its subsidiary Love Hemp Limited were £793,500 for its first quarter to September 30, 2020, a 13% increase on the previous quarter, which it said represented a “strong increase during the [coronavirus] pandemic” across all of its platforms.
The company said its conversion rate was up 12% compared to the preceding quarter, with over 14,000 units sold online and over 5,000 customer accounts created.
“Love Hemp has developed and strengthened a multi-platform brand strategy during the pandemic that we believe provides a launchpad for future growth”, the subsidiary’s founder and chief executive Tony Calamita said in a statement.