Media Release: Cannatrek To Raise $2.5 Million Via OnMarket To Roll Out National Digital Telehealth Platform
Medicinal cannabis company Cannatrek today announced it will raise $2.5 million in capital, via equity crowdfunding platform OnMarket.
The link to the capital raise can be found at: https://www.onmarket.com.au/offers/cannatrek1/
The funds raised will be used to roll out Cannatrek’s digital healthcare assets across Australia, to support its mission of providing affordable access to its growing patient base.
Tommy Huppert, Cannatrek’s founder and CEO, said the process will allow Australians to own a piece of the company:
“Medicinal cannabis is one of the most dynamic and progressive industries in Australia and Cannatrek aims to play a large part in it.”
“An investment in Cannatrek is an investment in the future of progressive treatments for a range of illnesses including pain, anxiety, sleep disorders and depression. More and more Australian doctors are recognising the benefits of medicinal cannabis and are prescribing it to their patients. Great potential exists for over-the-counter sales of medicinal cannabis in Australia and overseas.”
Mr Huppert said equity crowdfunding represented an exciting new funding pathway for companies like Cannatrek:
“Importantly, equity crowdfunding creates brand awareness for us in the large retail end of the market.”
“We are a little unusual as we have already raised more than $17 million to date, which has fully funded our operations and provided us with a runway for the future.”
The global medicinal cannabis market is forecast to be worth A$87 billion by 2024. In the 12 months to October 2020 Australia’s patient Special Access Scheme (SAS-B) approvals have grown from 21,000 to more than 72,000.
Having delivered more than 20,000 units to more than 3,000 patients in the past 12 months, producing revenues of more than $2.3 million, Cannatrek is a leading and differentiated player in the Australian medicinal cannabis market, simply because it’s a grower and distributor in one. It is ideally placed to take advantage of a rapidly growing market via its vertically integrated “seed to patient” model.
Mr Huppert said Cannatrek’s goal is to secure at least 20% of the estimated A$150 million Australian market in 2021, servicing a minimum of 100,000 future patients annually. He said the equity crowdfunding raise was an important step in the company’s journey.
“Equity crowdfunding allows a group of like-minded people who understand the benefits of medicinal cannabis to share in this nascent industry’s future by owning a piece of Cannatrek. Additionally, shareholders can buy our products and receive services at reduced prices.”
Cannatrek recently announced the completion of its first production from its Queensland facility which will be sold to Australian consumers, as well as its first exports to the UK.
The equity crowdfunding campaign will run for up to three weeks and has already generated investment in Cannatrek of more than $865,000 from 180+ investors, including $500,000 in the 24 hours after it opened.
The equity crowdfunding offer will close in mid-December, or earlier if the maximum funding target of $2.5 million is reached.
The capital raising values Cannatrek at $64 million.
With an operational 3,200 sqm growing facility in Queensland, yielding market-ready product in commercial quantities, Cannatrek is also rolling out a digital healthcare platform for patients and healthcare professionals to serve the rapidly-growing Australian medicinal cannabis market.
Cannatrek has received Major Project Status from the Federal Government for a phased $160 million, 160,000 sqm greenhouse in Shepparton in central Victoria, which will produce 160 tonnes of dried cannabis a year. This project is shovel ready; construction is planned to begin in 2021.
Tim Eisenhauer from OnMarket says Cannatrek has been a ‘standout performer’ in the equity crowdfunding space, and that medicinal cannabis was a ‘hot sector’ that has generated a lot of interest – from sophisticated investors to university students.
“It was clear from the start of the campaign that there was a real appetite from investors to own a piece of the company,’ he said. ‘We generated immediate momentum and passed the minimum $500,000-funding mark very quickly.”
The average equity crowdfunding offer via OnMarket raised approximately $600,000; the largest crowdfund to date has been $2.4 million.
Cannatrek has plans for an IPO in the next 24 months.
About Cannatrek Ltd:
Cannatrek is an unlisted public company with operations in Queensland and Victoria, focused on the supply of medicinal cannabis throughout Australia and internationally. Cannatrek is set to redefine the medical cannabis industry in Australia by converging research, cultivation, green technology and distribution. This integration will put patients first and create a sustainable domestic enterprise, underpinned by smart global partnerships. Recently, Cannatrek was awarded Major Project Status by the Federal Government for its new greenfield development – a 160,000-square-metre project in Shepparton in regional Victoria.
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