On the cusp of what Botanix (ASX: BOT) is calling "one of the most significant chapters" in the development of its cannabis portfolio, the company has completed a $40 million capital raising.
The oversubscribed share placement was led by the US-based institutional investors and specialist biotech investment funds opting for a bigger slice of Botanix's cannabidiol-based research and product pipeline.
Botanix uses cannabidiol, or 'CBD', to create skin products that treat conditions including acne and atopic dermatitis.
Executive chairperson and president of Botanix Vince Ippolito says recent data from multiple studies on cannabis in dermatology has generated an exceptional level of interest worldwide that the company can now begin to capitalise on.
"This has created an opportunity for the company to further understand the applications of cannabinoids in skin diseases," says Ippolito.
"The support from leading US institutional investors with significant dermatology and pharmaceuticals investment track records enables Botanix to advance to the next level."
As well as raising the money to develop its product and research suite, Botanix has welcomed two new US-based executives who will support the company's international expansion and lead commercialisation in the United States.
Richard Peterson has stepped into the role of chief financial officer while Howie McKibbon has been appointed chief commercial officer.
Peterson has extensive experience in upper management the dermatology industry
"Securing the services of both Ric and Howie is a testament to Botanix's impressive progress with conservative expenditure of resources over three short years and highlights the potential of its exciting cannabinoid portfolio," says Ippolito.
"Ric and Howie are great additions to the team and bring a wealth of knowledge and industry experience to Botanix."
Now that the company has completed its share placement, Botanix says it will ramp up commercialisation and clinical development.
Since June, BOT shares have more than doubled from $0.098 to yesterday's closing price of $0.23.Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Business News Australia