The company's first crowdfunding campaign managed to take in more than $1.8 million—which was used to develop Greenfern's research facility—while its current raise has already generated over $500,000.
A cannabis company based in New Zealand, Greenfern Industries, has become the latest business to launch a crowdfunding campaign to expand their operations.
The campaign is being launched via the crowdfunding platform Equitise—marking the second time Greenfern has used the website to secure more funding—and aims to raise $4 million (NZ).
We have been leading the way in the industry since initial legislation passed in December 2018, and now with the new Medicinal Cannabis Scheme that recently came into effect allowing the commercial cultivation, manufacture and distribution of medicinal cannabis in New Zealand we are ready to grow even bigger and better than before. Greenfern Industries Director, Dan Casey
The funds will be used to bankroll the purchase of a hydroelectric power station located in Taranaki, directly beside the company's existing medical cannabis research and extraction facility.
This will allow the Greenfern Industries to significantly reduce its energy costs, while also providing an opportunity to export surplus electricity—following a potential upgrade to its power capacity—back into New Zealand's national grid.
The company's first crowdfunding campaign managed to successfully generate more than $1.8 million—which was used to develop Greenfern's research facility—while their current raise has generated more than $500,000.
"By reducing our cost of production, we'll be able to offer products that are exceptionally high quality at an affordable price for the New Zealand market. That's an enormous competitive advantage," Casey said.
"With the global cannabis industry expected to be worth in excess of $70 billion by 2025, we believe we are well positioned to take advantage of both national and international market opportunities."
"We have chosen this form of capital raising to make it easy and accessible for everyday Kiwis to invest and join us on our journey to make sustainable, world-class medical and therapeutic cannabis products available to those who need it."
Greenfern also recently signed an exclusive distribution agreement with the UK-based Brains Bioceutical Corp, which will see the company's medicinal cannabis products sold throughout the New Zealand market.
"We expect to have our own medicinal cannabis finished products ready for the market in about 12-24 months, but even then, we'll continue to distribute Brains' products due to their sustainable quality and EU good manufacturing process accreditation," Casey said.
This pot stock could reach new heights in 2020 due to Coronavirus
The COVID-19 pandemic is showing no signs of slowing down, and as global markets enter meltdown many cannabis companies are feeling the effects of capital crunch.
While the market crash will continue for some time, it represents a golden opportunity for investors who are capable of riding out the volatility until share prices rally.
Luckily, one pot stock has developed antimicrobial drug that can already treat two superbugs while limiting their ability to develop antibiotic resistance.
Investors can also start picking up shares at rock bottom prices, as global investor sentiment continues to dampen thanks to COVID-19.
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