Cann Group entered a trading halt yesterday as it tries to raise A$20m for working capital, product development and R&D.
The halt will stay in place until the start of trading on Friday, unless the results of the capital raise are released to the market earlier.
The AFR reports the company is hoping to raise the funds through a $10m placement and $10m share purchase plan.
In terms sent to funds, potential investors were told Cann’s biggest shareholder at 22.3 per cent, Canadian company Aurora Cannabis, would not participate.
Cann’s directors will participate in the offer, subject to shareholder approval.