Cann Group (ASX:CAN) completes issue of 8M convertible notes

• Cann Group (CAN) has successfully completed the issue of convertible notes to raise just under $8 million
• A total of 8 million shares were issued to six sophisticated and professional investors at the price of $1 per share
• Of this, Cann expects to receive net funds of $7.56 million
• The money raised is expected to be settled on February 10 and will be used for working capital requirements
• Cann’s share price is down 6.11 per cent and trading shares for $1.23 apiece

Cann Group (CAN) has successfully completed the issue of convertible notes to raise just under $8 million.

Proceeds of the offer are expected to be settled on February 10 and will be used for working capital requirements.

A total of 8 million shares were issued to six sophisticated, professional and other investors at the price of $1 per share.

Of this, Cann expects to receive net funds of $7.56 million, before costs.

However, the convertible notes will not be quoted or tradable on the ASX but are fully paid, unsecured and convertible on or before February 10 at the issue of $0.70 per share.

PAC Partners and E&P Corporate Advisory have been appointed as Joint Lead Managers to the offer.

“It is very pleasing to have strong investor support as we progress discussions with a Tier 1 Australian bank on a loan facility and finalise details of the funding package for the stage commissioning of our Mildura production facility,” CEO Peter Crock said.

“Our revised business plan will focus on producing value-added medicinal cannabis products for the domestic Australian market while export opportunities continue to be developed,” he added.

The issue of the convertible notes will increase the cash reserves of the company by $7.56 million as well as the number of shares on issue.

Cann’s share price is currently down 6.11 per cent with shares trading for $1.23 apiece at 12:35 pm AEDT.