Krakatoa Resources Limited (ASX:KTA) witnessed extremely strong demand for its placement and has received firm commitments to raise $2,400,000 from professional and sophisticated investors. The amount shall be raised through a placement of 30,000,000 ordinary shares at an issue price of $0.08 per share.
KTA plans to utilise funds towards the advancement of its three projects in New South Wales’ Lachlan Fold Belt. Moreover, the proceeds from the capital raising shall be used for other project opportunities as well as covering costs of the issue and working capital.
Post announcement, KTA stock was up by 10% at a price of $0.110 at AEST 11:47 AM.
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Find out the drivers for the rise in cannabis stock rates Even though the cannabis sector is in its growing phase, Australian cannabis stocks have already started to rise actively due to a hastily increasing patient base, and a legislative landscape that is gradually beginning to liberalise.
Outreach and future of cannabis stocks As countries liberalise regulation for medical and recreational use of cannabis, it is predicted that the industry would grow sharply in upcoming years The global cannabis market stands currently at around $8 billion and it is expected that the hemp derived CBD market to hit approximately $22 billion by 2022.
Key Players in the sector Althea Group Holdings Limited (ASX: AGH) and Cann Group Limited (ASX: CAN) are amongst the top players. Other Australia cannabis market players are- MGC Pharmaceuticals Ltd (ASX: MXC), Elixinol Global Limited (ASX: EXL), THC Global Group Limited (ASX: THC), AusCann Group Holdings Limited (ASX: AC8)