Panaxia Raises Over $6M In Capital For European Expansion

Medical cannabis producer Panaxia Labs Israel Ltd. PNAX has finalized a 17 million ILS ($4.67 million) private placement of common stock and warrants to Israeli institutional investors.

The Israeli company issued 6.32 million common shares at a price of 2.69 ILS per share, and warrants to buy extra 5.06 million shares at a price of 4.00 ILS per share. Furthermore, Panaxia controlling shareholders and investors provided it with the option for an extra investment of a minimum of 6 million ILS.

This offering led to the raising of 23 million ILS ($6.3 million) in total gross proceeds, which the company plans to utilize to support its strategic projects, such as the marketing, export and sales in Europe.

Some of the investors who participated in the offering included the company’s chairman, Jonathan Kolber; CEO Dadi Segal; CTO Eran Goldberg; General Manager Assi Rotbart, and managing partner Ran Nussbaum.

“The successful completion of the private placement to leading Israeli Institutional Investors as Mor Investment house and Noked Capital, marks an outstanding achievement against the backdrop of the unfolding COVID-19 crisis and the challenging financial market conditions,” Segal said in a statement.

The proceeds raised will support Panaxia's plans of penetrating and expanding into the European market in the current year while continuing to grow business in Israel, Segal added.

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Photo courtesy of Panaxia.