CEO 'blown away' by record investment in South West cannabis

A South West based medicinal cannabis company has achieved the largest equity crowdfunding campaign for a WA business, raising $5 million.

2771 investors bought a stake in Cannaponics in just two weeks, through Australian-owned equity crowdfunding platform Birchal.

Perhaps underestimating the appetite of Australians for a local-grown medicinal cannabis industry, Cannaponics opened up to investors with an original goal of $500,000.

That was surpassed within 25 minutes of launching their campaign. The $3 million mark was surpassed within 24 hours.

“We’re blown away by the response from our investors,” Cannaponics CEO and founder Rod Zakostelsky said.

“We’re a feel-good company and want to do things differently. Everything – from our sustainable operations to our hiring approach to our pursuit of creating an affordable supply chain for customers – is built around the idea that we want to lift the industry up, and be the Australian leaders in both quality and quantity.”

The Cannaponics plant sits on 165 acres in Collie. Independent research studies have shown that the chosen site is the optimum climate for growing cannabis. While their 4,000 sqm greenhouse – delivering a controlled environment – allows for year-round growth.

The funds will be used to accelerate the development of Cannaponics site – including their 4,000sqm greenhouse – and ramp up their operations to meet the growing demand in Australia for medical cannabis.

Australian prescriptions for cannabis are predicted to reach 30,000kg by 2024 – half of which has traditionally been imported.

“Cannabis can be life altering for patients and provide them with a better quality of life, especially those suffering from serious conditions and ailments. It’s highly-researched and becoming a more common alternative to opioids,” Mr Zakostelsky said.

“We have the team, the tech, and the expertise to change the industry and now we have the backing of more than 2770 Australian investors to make it happen soon. We’re so thrilled with the results and so happy to welcome our new investors.”