Cann Group has insisted shareholders will be rewarded for their patience as the company embarks on a capital raise to fund additional manufacturing and production capabilities.
Chief operating officer Shane Duncan said he ‘understood the frustration’ of investors who have yet to see the generation of significant revenue or profitability.
But he told Cannabiz that while the pace of progress may appear slow, it is ‘bloody close’ to delivering on its strategy.
The comments came as Cann Group prepares to raise $10m through a share purchase plan after completing a $10m placement with institutional investors.
The capital raise was first announced to the market in late July.
Duncan said the cash will fund new production and manufacturing capabilities for its Satipharm Gelpell products that will ultimately lead to differentiated product for consumers and GPs.
Bringing such processes in-house – rather than being handled by a third party as originally intended – will save the company 60% in costs, or up to $23m based on full capacity at Mildura.
“An opportunity came up for us to purchase extraction equipment at a really good price,” Duncan explained. “Then we thought ‘okay, if we’re going to do this, we shouldn’t just do extraction, we should bring as many manufacturing steps as we can into Mildura’.”