ECS Botanics (ASX:ECS) frees up funds with asset sales and new debt facility
- ECS Botanics (ECS) launches the sale of two assets and secures a new loan facility
- The company agrees to sell its hemp food and wellness business for $250,000 to Ananda Food and plans to sell its Tasmanian medicinal cannabis facility
- To bolster its funds further, ECS secures a $2 million commercial loan facility with NAB
- The non-dilutive funds will be used to expand medicinal cannabis production, with the goal of boosting future revenue
- Shares in the company are steady on the market and are trading at 2.7 cents at 10:43 am AEST
Medicinal cannabis company, ECS Botanics (ECS) has launched the sale of two assets and secured a new loan facility.
The company agreed to sell its hemp food and wellness business for $250,000 to Ananda Food, with contract completion expected in August upon the finalisation of due diligence.
In addition, the company has planned to sell its Tasmanian medicinal cannabis facility, noting a high level of interest.
To bolster its funds further, ECS secured a $2 million commercial loan facility with NAB.
The non-dilutive funds received through the sales and loan will be used to expand medicinal cannabis production, with the goal of boosting future revenue.
Managing Director Nan-Maree Schoerie said she was pleased with how operations were progressing.
“The company is about to commence the stage three expansion which will look to double the secure cultivation area and the installation of more protective cropping capacity leveraging the available funds,” she said.
“Deploying the most appropriate funding maximises value and returns for our shareholders.”
Originally published by The Market Herald
22 July 2022 10:47(AEDT)
