Collie-based medicinal cannabis firm Cannaponics sets equity crowdfunding record after raising $5m

Headshot of Cheyanne Enciso
Cheyanne EncisoThe West Australian
Collie-based medicinal cannabis company Cannaponics has raised $5 million through Birchal.
Camera IconCollie-based medicinal cannabis company Cannaponics has raised $5 million through Birchal. Credit: Supplied

Collie-based medicinal cannabis startup Cannaponics has raised $5 million through Birchal, becoming the largest equity crowdfunding campaign for a WA-based company in the platform’s history.

The medicinal cannabis company on Thursday also announced the campaign, which launched two weeks ago, was the second largest capital raising ever conducted by an Australian company on the platform.

Cannaponics had originally set out to raise just $500,000, with investors chipping in more than $3m within 24 hours of the campaign’s launch.

More than 2750 investors provided funding throughout the campaign.

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Founder and managing director Rod Zakostelsky said he was blown away by the response.

“We’re a feel-good company and want to do things differently,” he said.

“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.”

Birchal co-founder and chief executive Matt Vitale said the strength of the Cannaponics campaign was another positive indicator of an increasingly active market.

“Any reluctance earlier in the year about whether it was a good time to raise has been well and truly quashed with Cannaponics incredible results,” he said.

“We’re seeing large numbers of investors motivated to back Australian innovators like Cannaponics as they carve out opportunities in growth industries, like plant based medicines.

“This result reflects investors’ desire to back the early-stage growth of forward-thinking business, like Cannaponics, even in the current context.”

Cannaponics will use the funds to accelerate development of its biotech production facility, including its 4000sqm greenhouse, located in WA’s South West.

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