Collie-based medicinal cannabis startup Cannaponics has equalled the funding record on the equity crowdfunding platform Birchal, raising the maximum allowed under Australian law, $5 million.
The raise did break the record for the medical cannabis sector, with the final number being ten times the company’s minimum target of $500,000. They blew past this amount in the opening half an hour, and hit the $3M mark within a day.
Overall, 2771 investors piled into the stock, with CEO Rod Zakostelsky delighted in the success of the campaign.
“We have reached our Maximum Target and to all of our new supporters who got behind us we are shouting out to you a massive thank you!”, he said on the Birchal platform, shortly after closing the round on 18 May.
Only one other company has raised the maximum $5M on Birchal previously, New South Wales-based Zero Co, in October 2021.
Earlier this month, Perth VR gaming startup, Ready Team One, raised $600K on the Birchal platform, to fund their national and international growth plans.
For Cannaponics, they now have the funds to develop their 67-hectare site in Collie, which includes a 4,000 square metre greenhouse, which allows for all year production.
In Australia, approximately half of all medicinal cannabis is imported, with the total market worth $1.4B in 2023, which is predicted to grow significantly.
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