An Australian hemp processor said it has closed its AUD$3.4 million (US$2.2 million) seed capital round with a final AUD$1 million (US$660,000) in cash from a strategic partner.
The deal gives the partner, Sydney-based Danehill Group, a 25% stake in Tasmania-based X-Hemp, which processes hemp straw into hurd for use in hempcrete.
“This final stage enables us to fast-track our ambitious business plan,” said founder Andi Lucas, who retains 56% of the company.
Building scale
X-Hemp said in a press release that the fresh capital puts it “in pole position to cement its place as a leading player in the burgeoning Australian hemp industry,” and that it will use the funds to procure infrastructure, expand research and development, and grow its all-female staff of eight.
“Whilst the industrial hemp industry in Australia is very much in its formative stages, we share Andi’s vision that X-Hemp can be a market leader in what could be a rapidly growing industry,” said John Murray of Danehill. “A solution needs to be found for both Australia’s chronic housing shortage and carbon-emitting construction industry.”
Track record
Founded in 2024, Danehill Group is a Sydney-based, family-owned private investment manager established by John and Hamish Murray. John Murray, a 30-year veteran of funds management, co-founded funds manager Perennial Partners, Melbourne, in 2016, while Hamish Murray previously held senior advisory roles with Sydney-based Koda Capital, a wealth advisor.
“Danehill Group’s investment in X-Hemp allows us to benefit from John and Hamish’s extensive industry experience and commercial connections,” Lucas said.
Before the Danehill investment, X-hemp raised AUD$1.5 million (US$1 million) in October 2023, followed by AUD$900,000 (US$600,000) through a November 2024 crowdfunding campaign. That effort attracted 1,205 small investors contributing more than AUD$300 (US$200) each.