Cannabis group hashes out deal to pay Wagners with shares
CANNABIS company Asterion has given Wagners the option to settle a portion of some invoices with shares.
This discussion comes as Wellcamp, an affiliate of the Wagners Properties, waits for the green light in the construction and development of Asterion's Toowoomba medicinal cannabis project, which will be the largest of its kind in Australia.
Asterion has offered to pay parts of Wellcamp invoices connected to goods and services for the project with common shares in the capital of of the company.
"As Wagners and Wellcamp are expected to play an important role in the construction and development of the Toowoomba Project, we are pleased to be offering Wellcamp this equity participation option which is intended to provide Asterion with additional equity financing and offer Wellcamp the opportunity to share in the success of Asterion going-forward," Asterion CEO Stephen Van Deventer said.
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In accordance to the Equity Participation Agreement, Wellcamp can chose to receive Asterion shares as payment for up to 10 per cent of any approved invoice, which can be increased to 100 per cent with prior approval from Asterion.
Asterion said the shares would have a deemed issuance price equal to the then current financing price of Asterion, or, if it is not conducting a financing, at the last financing price.
Asterion lodged its development application with Toowoomba Regional Council in May and is awaiting approval.