Creso Pharma has received commitments to raise as much as A$7.6m through the issuance of two separate convertible notes.
The capital will go toward marketing and sales support for the company's existing product range across Canada, Europe, and the US, funding for psychedelic subsidiary Halucenex's Phase II clinical trial, evaluation and completion of potential M&A targets, and general working capital purposes.
The financing package includes commitments from both new and existing professional investors to raise $2.6m through secured convertible notes, alongside a separate agreement with New York-based asset and fund manager Obsidian Global to raise up to $5m via convertible notes.
Pending shareholder approval, former director and related party Adam Blumenthal has committed $500,000 to participate in the secured convertible note offer.
CEO and managing director William Lay said: "We are very pleased to have secured additional funding from new and existing investors…We are also pleased to have commenced this relationship with Obsidian.
"Obsidian has a successful track record of supporting ASX-listed growth companies and we believe that the financing provided by both convertible notes will allow us to continue progressing various opportunities being presented in the current macroeconomic environment."
In a separate quarterly update filed with the ASX, Creso reported total group revenue of A$2.05 million for the period, reflecting a 77% rise on the prior corresponding period and a 31% increase on the preceding quarter.
That Q3 result brings the company's unaudited year-to-date revenue to A$6.37m, a figure that already surpasses the full-year record set in CY21.
Creso noted that its proposed acquisition of Health House International is expected to support its international expansion ambitions and drive further revenue growth. Health House recorded $4.6m in cash receipts during the quarter, underpinned by a strong showing in the Australian market.
