Use of funds4.1(1)(d) – Use of Funds GLH raised a total of US$13,866,082 (CAD$17,525,423) since inception through the sale of its securities over two capital raisings.
The Company raised US$4,747,153 (CAD$ 5,999,153) in 2014.
Proceeds from the second capital raising from February 2015 to September 30, 2015 were US$9,118,929 (CAD$11,526,270).
This excludes US$2,190,000 raised from the issuance of the Debentures.
The proceeds were used to fund the acquisition of capital assets, finance working capital and operational needs of GLH.
As of the date of this Listing Statement, GLH had approximately US$2,200,000 of available cash.
Cash used in operations was US$(4,382,739) in the six months to June 30, 2015.
The Company raised US$7,592,137 of common share capital and debt in the six months to June 30, 2015.
The use of proceeds was for capital expenditure, working capital and finance of operations. Working capital requirements were US$2,393,604 in the six months to June 30, 2015.
Fixed assets purchases including deposits for property, plant and equipment were US$1,122,176 in the six months to June 30, 2015 predominantly for extraction machines and ancillary equipment.
As at June 30th, 2015 the company had cash of US$2,687,300.
Proceeds from capital raising since the end of June to the date of this listing statement were approximately US$2 million.
Current income from operations is not yet high enough to finance capital expenditures and working capital.
The total budget for capital expenditures in 2015 is US$9.6 million excluding acquisitions.
The following table sets out the intended use of funds and the amounts allocated for each principal purpose.
Funds Allocated Principal Purpose
US$205,000 Acquisition of one CO2 extraction machine plus ancillary equipment in Q1, 2015 US$63,724 Acquisition of an additional Hydro-Carbon extraction machine plus ovens in Q1, 2015 US$121,000 Refurbishment dispensary in Q1,
US$145,000 Build-out and development of new cultivation facility in Q2, 2015
US$200,000 Payment for two MRX extraction machines, deposit for six more and payment for six roto-evaps in Q2, 2015
US$1,260,000 Payments for six MRX extraction machines, deposits for 17 rotoevaps in Q3, 2015 US$48,000 Ancillary equipment Hydro-carbon in Q3, 2015
US$245,000 Edibles infrastructure and equipment deposit in Q3, 2015
US$4,295,000 Acquisition of Aurora nursery, refurbishment buildings 35 and 36 in Q3, 2015. Asset purchase Aurora with convertible and debt financing
US$25,000 Cooling dispensary in Q3, 2015
US$1,964,5000 Balance 17 roto-evaps, refurbishment processing lab over six months, order further four MRX extractors and roto-evaps in Q4, 2015
US$200,000 Balance edibles infra-structure and equipment in Q4, 2015