- Cann Group (CAN) locks its shares in a trading halt after announcing it was looking to raise further funds via a capital raise
- The trading halt is set to be lifted on Monday, July 26, when the outcome of the raise is disclosed to market
- The latest fundraising effort comes shortly after the company cut its forecasted revenue for FY21
- Cann’s most recent quarterly cash flow report revealed a cash balance of $16.3 million, which was estimated to see it through the next 50 quarters at the time
- Cann Group shares last traded at 38 cents prior to today’s trading halt
Cann Group (CAN) shares are locked in a trading halt after the company announced it was looking to raise further funds via a capital raise.
The medicinal cannabis company advised its shares would remain in the halt until Monday, July 26, when it discloses the outcome of the fundraising effort to market.
Cann has not indicated how much it is looking to raise or for what purpose but has indicated it will be targeting sophisticated and institutional investors.
The search for funds comes after the company slashed its revenue forecast for the 2021 financial year amid difficulties regarding international regulatory submissions, third-party manufacturing and material supplier issues.
Cann’s most recent quarterly cash flow report revealed a cash balance of $16.3 million, which was estimated to see it through the next 50 quarters at the time.
Prior to this, Cann had secured a $50 million NAB debt facility in November 2020 and a $40 million capital raise via a share placement and purchase plan in July 2020.
Cann Group shares last traded at 38 cents prior to today’s trading halt.