Greencare Capital - New investment and update
RNS Number : 2188U
Greencare Capital PLC
01 April 2021
 

 

 

1 April 2021

Greencare Capital plc

 

("Greencare" or the "Company")

 

New investment and update

 

Greencare, the investment company focused on investing in medicinal cannabis and related areas, is pleased to announce that it has agreed to invest £100,000 in Clearly Supplements Limited ("Clearly"), as part of a £500,000 fund raising.  The investment is by way of a convertible loan note ("CLN") with a 5 per cent. coupon and a 12 month durationThe CLN is expected to convert at the time of a listing at a 30 per cent. discount to the then placing price subject to a maximum price. 

 

Clearly has developed a full range of products under the Clearly CBD brand.  It is also establishing a number of distribution channels which include direct selling and the capability to enter the Asian market, including China, through distributors in Hong Kong.  It is also focused on certain other key market segments such as the fitness sector and will, at the same time, be looking to build a retail presence and to operate online. Clearly has also entered into a supply agreement with Hempflax International, Europe's largest independent hemp grower and processor and is planning to seek its own stock market listing in the short to medium term.

 

Greencare was admitted to the AQSE Growth Market as an investing company at the end of 2019, raising gross proceeds of around £515,000Since that date, the Covid-19 pandemic has, along with various changes in legislation, understandably, impacted the rate of progress the Company has been able to make in advancing the various investment opportunities that had been referred to in the Admission Document published at the time of admission.    

 

On 30 June 2020, the Company announced that it had raised an additional £1,367,500 by way of a further placing. The proceeds of this placing are to be used to provide additional investment funds for the Company.  This fundraising took place at a price significantly higher than the placing price back in December 2019 and demonstrates the level of investor interest in this sector. At that time, the Directors announced that they were continuing to appraise the investment opportunity referred to in the Admission Document.  However, due to certain changes in legislation and the results of due diligence, the Company will not be proceeding with this opportunity. 

 

In summary, the Directors believe that the Company is well placed to deploy funds in line with the Company's stated aims and this investment in Clearly illustrates the interesting opportunities that are presenting themselves.  The Board very much looks forward to updating the market further in the near future.

 

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

 

 

Enquiries:

 

Greencare Capital plc

Fabio Carretta

 

+39 345 23 59 968

Cairn Financial Advisers LLP

AQSE Corporate Adviser

Jo Turner / James Lewis

 

+44 20 7213 0885

 

 

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