Cann Group has told the Australian Securities Exchange (ASX) a recent surge in its share price may have resulted from positive news coverage of an investor presentation by CEO and managing director Jenny Pilcher and the sale and lease-back of its Mildura facility.
After the firm’s shares rose from a low of A$0.045c on September 26 to a high of $0.073c today (September 30) – prompting a price query from the ASX and a pause in trading – company secretary Steven Notaro told the exchange the company was not aware of any unannounced information which could explain the recent activity.
However, he said Pilcher’s presentation on September 19 at the Pitt St Research Life Sciences Conference had been well received by the market, including positive reports in the financial press.
The company also launched an advertising campaign through local and national outlets for the sale and lease-back of Mildura in August, with the deadline for expressions of interest – originally last Thursday (September 26) – extended until Friday, October 11.
Notaro added: “As at today, the company is not aware of any financial details of any potential offer that may be put forward as part of the sale and leaseback campaign.
“However, it has received certain positive news coverage… which described the purchase price of more than $80m and gave a detailed and positive description of the capabilities of the facility.
“The company is [also] contemplating raising further capital via a rights issue, which has been mentioned in previous ASX announcements. The terms of the rights issue are currently being evaluated and are not yet finalised.
“The company would not consider this event, if it were known to the market, to be a reason to explain the increase in [its] share price referred to in the relevant price query letter.”