The closing date for buying shares in the latest trendy agricultural enterprise, ECS Botanics was on Friday.
ECS, which will trade under the ASX code ECS, is in the business of growing industrial hemp, aimed at the food industry, but with ambitions to expand into medicinal cannabis.
The company was formed in February 2018, in response to hemp foods being legalised for human consumption in November, 2017. It aims not only to develop, manufacture and distribute hemp products at both wholesale and retail levels. It will start with raw hemp oil and seeds, and has plans for soups, protein shake powders, curry sauces and dressing.
The shares are priced at 4c each, coming to the stock market through a reverse takeover of Axxis Technology (ASX code AYG), a dormant company suspended from trading for years. Technically, Axxis is offering its shares at 4c each to raise between $4.5-$6.5 million to buy ECS and get it up and running. If it succeeds, Axxis will change its name to ECS Botanics.
The Punter is not rushing to buy. He will watch with interest.
Meanwhile, TasFoods (TFL), is today (June 20) launching its rights issue to help pay for the takeover of Betta Milk. It is offering one new TFL share for every 3.099 already held, at a price of 12c. each. With TFL trading around 16c on the market, it looks like a real bargain, but the Punter as usual will wait until the last minute. The offer closes on July 12.
Anyone buying TFL shares before 7pm (EST) on June 25 will be entitled to take part in the rights issue. The offer is fully underwritten, so TasFoods will get the $8m it wants.
Lithium Australia (LIT) is also asking for money, offering new shares at 6c. That's not such a bargain, but shareholders who do not want to cough up can sell their rights, under the ASX code LITR.
- The Punter has no financial qualifications and no links to the financial services industry. He owns shares in a number of companies featured in this column.