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Cann Group (ASX:CAN) recoups $1.2m in missing funds

Health Care
ASX:CAN      MCAP $27.12M
09 July 2021 10:10 (AEST)
Cann Group (ASX:CAN) - CEO Peter Crock

Source: Cann Group

Cann Group (CAN) has received $1.2 million in court proceedings as the company seeks to recover funds lost in a cyber security breach early this year.

The medicinal cannabis supplier announced the potential loss of $3.6 million in February, after payments intended for an overseas contractor for work on its Milura factory were intercepted by a third party.

At the time, Cann quickly began working with its bank to determine whether any of the funds could be recovered. Insurance brokers were also onboarded to determine whether a claim could be made to cover the loss.

A review of the company’s IT systems aimed to identify any contributing issues.

In March, Cann subsequently commenced a civil proceeding in Hong Kong seeking to recover the missing payments.

The company has updated the market on its progress this morning, saying criminal investigations are continuing in various jurisdictions.

Even so, there is reportedly no guarantee that any formal prosecutions will arise from the action, nor that any further funds will be recovered.

Following the announcement, shares in Cann Group were trading 1.25 per cent higher at 40.5 cents each at 11:55 am AEST.

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