German Cannabis-Focused Co. Avextra Sets Its Sights On Expanding European Distribution With New Funding

European pharmaceutical cannabis-based medicines provider Avextra AG has closed its most recent capital raise with support from existing investors, strategic partners and new institutional investors.

What Happened

The German company said on Wednesday, that it has raised more than EUR20 million ($21.5 million) over the past 18 months, which included equity instruments and convertible loan notes, all of which have now been fully converted into common shares, valuing the company at EUR100 million.

Why It Matters

The funding will boost Avextra's continued expansion of its European distribution channels, including the sales of the company's product portfolio into new markets across the continent and further enhancing the market development in Germany.

It will also support and accelerate clinical trials to create new evidence-based treatment options for specific indications.

"The continued support from our existing shareholders along with the participation of new institutional investors and strategic partners in this most recent capital raise, amid the current market environment, is a testament to the differentiation of Avextra's asset base, IP portfolio and operating strategy," Dr. Bernhard Babel, CEO of Avextra AG said. "This latest funding round will continue to support the Company as we execute on our two-pillar strategy and continue to deliver results for our shareholders."

The company unveiled the Avextra Alliance for Evidence-based Cannabis Medicine in October. The alliance is an initiative to advance research and development in cannabinoid-based therapies in European markets where federally regulated patient access schemes are in place, the German-based company said at the time.

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