Medicinal cannabis firm Eco Equity has announced it has begun the second round of funding for its cultivation project in Zimbabwe. The firm is also introducing a convertible loan note instrument to investors offering 15% interest per annum in order to achieve its funding target.

After achieving its objective of raising £8.1m during the first round of funding, the company has stated its objective of raising £10.2m during the second round.

The convertible loan note is available to individuals who qualify as high net worth individuals, as well as Family Office, institutional, professional and sophisticated Investors. The loan note is also available to high net worth companies and institutions.

The loan notes shall not be redeemable and shall automatically be converted into ordinary shares in the company. The loan notes have a mandatory conversion date of 36 months from the date of the issue. The interest of 15% shall be paid annually.

Eco Equity is the first company to hold a medicinal cannabis licence in Zimbabwe and is on track to replicate the model in Antigua after positive talks between Eco Equity and the government.

Jon-Paul Doran, CEO of Eco Equity, said: “Launched two years ago, Eco Equity is cultivating and exporting from Zimbabwe as well as providing dispensary locations in Antigua. The convertible loan note instrument we are launching with a 15% return delivers on our commitment to ensuring maximum returns for our investors.

“Medicinal cannabis has proved itself to be one of the more resilient industries during the coronavirus pandemic. Having begun cultivation in Zimbabwe, we are looking forward to the next stages throughout the rest of 2020 and into 2021 as the market goes from strength to strength.”

The proceeds from the loan notes will be utilised to continue the advancement of the company’s project in Zimbabwe. Eco Equity will use the funds to obtain extraction equipment, refining equipment, and the completion of three green-housing facilities, seeds and working capital.

Eco Equity is based in London and is the pharmaceutical arm of investment vehicle JPD Capital. Eco Equity has operations in Zimbabwe with advanced plans to enter the Antiguan market. Eco Equity secured one of five licences to cultivate cannabis for medicinal purposes in Zimbabwe in late 2018. Cultivation was due to start as scheduled in the second quarter of 2020, however coronavirus has delayed that until the end of Q4 2020.