Cann Group shareholders have been given an extra four weeks to participate in the company’s latest capital raise as management continued to talk up its future prospects.
Speaking at the firm’s annual general meeting today, chairman Julian Chick said Cann Group was focused on delivering break-even EBITDA, with the rights issue an “important” part of that ambition.
The company has been through a “significant period of adjustment and growth”, he said, but was committed to delivering a “positive and prosperous future for Cann”.
Having restructured its operational cost base, the company was now focused on “reviewing our revenue streams to maximise efficiency and profitability”, Chick told shareholders.
“On October 7 the company launched a rights issue…and is targeting to raise A$6.25 million,” he said. “These will be important funds to facilitate the achievement of our EBITDA break-even goal.”
Cann Group initially set a deadline to participate of October 24 before extending it to October 31. Shareholders now have until November 25.
Should Cann Group hit its maximum target, nearly $2m will be set aside for the partial repayment of loans and interest, $1.56m for dried flower cultivation costs and $1m for the importation of its in-house Botanitech product range.
Whether shareholders support the business through the rights issue remains to be seen. In announcing the plan last month, Chick said the decision to return to investors for more funding was “not taken lightly”.
