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The Hydroponics Company directors provide vote of confidence in medicinal cannabis strategy

Three directors participate in oversubscribed share purchase plan.
Medicinal cannabis
Shares traded at up to $0.87, almost 6% higher than Thursday's close.

The Hydroponics Company (ASX:THC) directors have aligned themselves with the company’s medicinal cannabis strategy by participating in the recent $3 million share purchase plan (SPP).

Chairman Ian Mutton and directors Hamish Macdonald and Peter Wallace have increased their indirect interests by acquiring shares in the oversubscribed SPP.

Indirect interests extended

Mutton holds an indirect interest through Crafers Pty Ltd, which acquired 4,786 shares at a value of circa $3,015.

Macdonald holds indirect interests through Hamsar Pty Ltd and Pegasus Agriculture Pty Ltd, which both also acquired 4,786 shares.

Wallace holds an indirect interest through superannuation fund Wallace Capital Pty Ltd, which purchased 23,810 shares at a value of $15,000.

READ: The Hydroponics Company forced to scale back share purchase plan

The Hydroponics Company traded at up to $0.87 today, up almost 6% on Thursday's close.

It was forced to scale back applications for the SPP and return money to applicants due to the oversubscriptions.

Funds raised will assist in developing the company’s Australian medicinal cannabis strategy and provide financing for its investment in its Canadian assets, with the remainder used as working capital.

READ: The Hydroponics Company assesses Canadian entity with C$20 million a year in revenues

The Hydroponics Company is assessing further acquisition opportunities and organic growth initiatives and is assessing the acquisition of a Canadian entity with C$20 million a year in revenues.

Should the acquisition proceed it will strengthen the group’s overseas operations as the entity is complementary to the existing Crystal Mountain-Dragon Vision business.

Successful conclusion of the acquisition would provide exposure to the rapidly growing licensed producers in the eastern states of Canada.

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