Two brokers hired for BOD Australia equity raising
Bod Australia has hired Canaccord Genuity and Taylor Collison to oversee a capital raising, as it seeks to accelerate growth in its medicinal cannabis business.
The cosmetics and natural medicines company launched an institutional placement to raise $5.8 million on Wednesday, according to a term sheet sent to fund managers.
The offer price of 53¢ a share represented an 11.7 per cent discount to the last close and a 12.5 per cent discount to the five-day volume weighted average price.
"The directors of the company will participate in the placement for approximately $450,000 subject to shareholder approval," the term sheet said.
Funds raised will be used for "ongoing clinical trials for the company's proprietary cannabis wafers; to pursue international sales growth, including growing a number of 'daigous' to access customers in mainland China; and to expand the natural supplements product range."
Bod said in January that its cannabis oils and raw materials were to be used in iX Biopharma's WaferiX product, which is a small wafer that dissolves under a person's tongue and releases any active compounds for rapid absorption.
Bod is run by Joanne Patterson while Stephen Thompson, chief adviser to Brett Blundy and BBRC Worldwide, is a director on the George Livery-chaired board.
BDA Price at posting:
60.0¢ Sentiment: Hold Disclosure: Held
