Medicinal marijuana, biotech and green energy technology are three of the “hottest” investment areas in today’s marketplace – and it is not often that you can find one company that can offer investors an opportunity to support all three in one vehicle.
ASX-Listed Algae.Tec Ltd (ASX: AEB) is offering investors just such a unique opportunity to get in at the ground floor in these exciting and rapidly growing areas.
Already a global leader in diversified quality algae technology developments Algae. Tech has recently signed agreements that provide it with a specialist entry in the value driving area medicinal cannabis products.
The company is led by a highly experienced and respected management team, including:
With over 30 years’ experience in a range of senior executive positions with Australian and International companies.
With more than 35 years of experience over a broad field of chemistry and associated technologies, including global markets, bulk chemicals and plastics, differentiated commodities and intermediates, specialty chemicals, polymers and interaction with environmental sectors.
With over 30 years of experience in a finance, project development and public company management.
That’s almost 100 years of senior level experience that is driving Algae.Tec as a specialist producer, focused on developing technology that captures waste carbon dioxide to produce commercial quantities of a range of plant derived products for use in the fuel, nutraceuticals, animal feed, aquaculture and medicinal sectors.
That capacity and Algae.Tec’s unique technology and studies in the specialist areas of diversified, quality algae developments has been recognised by international medicinal cannabis product developer Winter Garden Biosciences as making it an ideal local partner.
Uruguay-based Winter Garden is considered the only company in the world able to develop a fully monetised drug development pipeline based on a portfolio of cannabinoid pharmaceutical products.
And what a market it is. Research has identified that the global medical marijuana market is expected to reach a value of US$55.8 billion by 2025.
According to a report produced by the University of Sydney and MGC Pharmaceuticals, the forecast for cannabis based products in Australia in relation to the treatment of HIV, MS, Epilepsy, and Cancer is 166.6 kg of THC per annum and approximately 404.7 kg of CBD. Today’s CBD oil wholesale price can range from $25-$50 per gram. According to WGB they can produce CBD oil at a cost of $2-$5 per gram providing gross margins approaching 90%.
Interestingly it has been identified that Algae.Tec’s unique technology can significantly boost hemp crop production and this has led to the collaboration between the two companies.
Algae.Tec’s due diligence process to date has revealed numerous studies that have found that medicinal cannabis is able to withstand high lighting levels well. Critically, they also found that the crops grown under high light intensity produced a higher bud weight when compared to the same crops grown under normal light intensity.
Finally, various studies found that in all varieties of light, crops grown using LED lighting produced a higher content of active substances (e.g. CBD and THC) than crops using HPS lamps with the same light intensity.
This current research along with the costs savings that the Algae.Tec growing system can deliver should provide a significant focus and commercial opportunity for the two companies.
The exclusive deal with Winter Garden will enhance Algae.Tec’s existing product streams and supply channels and give it near-term entry into the burgeoning cannabis-based products markets. The optimisation of Algae.Tec’s containerised growing system for cannabis-based products will also provide for a highly controlled, replicable, portable growing system that will enable traceability and verification of products from plant to user. Based on peer-comparisons this represents the cheapest entry into a cannabis based market on the ASX.
Algae.Tec has carried out in excess of six years of laboratory, bench-scale and pilot tests and product trials to date; assessed competitive technologies; and has applied the development phase results to detailed engineering evaluations of commercial plant operations.
Algae.Tec’s technology has demonstrated exceptional performance, providing step change improvements in productivity, product yield, carbon dioxide sequestration, plant footprint requirements and substantial capital and operational cost savings versus agricultural crops and other competitive processes in the industry.
The company is seeking to raise approximately A$8 million through a Renounceable Pro-Rata Entitlement Issue to fund further research and development of technology and further developments.
To undertake its collaboration with Winter Garden, support the development, plantation and harvesting of medical marijuana crops and sale of cannabis oils, and finalise the development of the company’s nutraceutical plant in Atlanta, Georgia the Algae.Tec requires funds and has elected to undertake this Rights Issue to allow all shareholders to participate.
Under the Rights Issue, eligible Algae.Tec shareholders registered at the record date will be entitled to subscribe for three new shares for every four existing shares held, at an issue price of $0.03 per share. Participating Shareholders will also receive one free attaching option for each two new shares subscribed for, with such options having an exercise price of $0.05 and an expiry date of 28 July 2020.
Algae.Tec is now uniquely positioned to develop, produce and supply nutraceuticals, animal feed, aquaculture and cannabinoids that enable and enhance the delivery and commercial success of those products and provides a unique investment opportunity into the markets of the future.
For more details or to take up the offer, please fill out the form below.
Company Name: Algae.Tec
Phone: +61 (8) 9380 6790
Mobile: +61 (0) 419 920 272
Website: www.algaetec.com.au
