LONDON (Alliance News) - Highland Natural Resources PLC said Tuesday it will look to raise at least GBP1.3 million through a share placing on PrimaryBid.com in order to established a new cannabidiol subsidiary in Colorado, US.
Highland will look to raise at least GBP1.3 million from the issue of shares at 8.5 pence each. Shares in Highland closed 10% lower at 9.70p each on the London Stock Exchange on Tuesday.
The funds raised will be used to established a new subsidiary - Zoetic Organics - in Colorado and develop a organic, vertically integrated cannabidiol operation.
"This initiative follows the completion of a recent trial, which saw hydrogen from Highlands' rare naturally occurring gas operation in Kansas, discovered during the summer of 2018, applied as a natural, organic fertiliser at a cannabis operation in Colorado," Highland explained in a statement. "Encouragingly, the gas mixture increased plant size, height, root diameter and flower count by up to 30%, surpassing expectations."
Zoetic Organics will target sales of organic hemp oil, tinctures and cannabidiol-infused chewing and smoking products. The new ventures will be developed alongside its existing natural resource ventures.
Highland anticipates first revenue from the new venture to emerge from mid-2019 onwards. Profitability is expected towards the end of 2019.