Vancouver, Canada-based medical cannabis science firm Veritas Pharma Inc. (CSE: VRT; OTC: VRTHF; and Frankfurt: 2VP) closed a private placement announced September 20. It raised $1.56 million by issuing 8 million shares of common stock at $0.19 share. The placement hoped to raise $2.5 million by selling 13.1 shares.
The funds raised were used to 1) buy a 25% interest in a 10,000 sf cannabis growing facility in Kelowna British Columbia for $1.25 million, and 2) for working capital. This Kelowna facility will begin production in roughly 12 weeks.
Veritas will also consolidate its shares on a 10 to 1 basis.
Dr. Lui Franciosi, CEO of Veritas said, “The closing…and share consolidation provide Veritas with the opportunity to…secure clients for its new cannabis testing services, (and gives us)…cash flow for the continued research, development and commercialization of cannabis strains...”
Veritas Pharma Inc. is an emerging pharmaceutical and IP development company whose 100% owned subsidiary Cannevert Therapeutics Ltd. Is attempting to advance the science behind medical cannabis. It aims to develop cannabis strains with proven scientific evidence of efficacy for pain, nausea, epilepsy and PTSD, solving a need for clinical data to support medical marijuana claims.
CTL uses a low-cost R&D model to drive value and speed-to-market. Its management team consists of veteran academic pharmacologists, anesthetists & chemists. The company plans to patent IP strains and sell or license them to cancer clinics, insurance industry and pharma, targeting a multi-billion-dollar market. Its stock trades on the OTC, CSE and Frankfurt exchanges.
Source Veritas press release