Cann Group has not ruled out a further capital raise as the company reported a first-half loss of A$8.3 million, a 12% improvement on the same period last year.
Revenue climbed from $1.08m to $3.1m with Cann ending the period with £10.6m in the bank following capital raises earlier in the half which generated $18.7m.
Asked during a presentation to shareholders if the company was planning another raise, chief financial officer Deborah Ambrosini said: “There has been no decision on any capital raising activity at this time.
“We’ll continue to closely monitor our expenses and cashflow position… but at the same time we’ll continue to focus on the completion of the Mildura facility, progression of a schedule 3 trial… and continue to increase the sales revenue of our existing products.”
Chief commercial officer Shane Duncan told shareholders the lift in revenue, sales and production during the period had been driven by an increase in B2B customers, of which Cann now has 19.
He said the company delivered almost 16,000 oil bottles out of its southern facility in the six months to December 31, up from 2,865 in the previous corresponding period.
That is forecast to grow to 40,000 in the second half, while 300kg of dried flower products are expected to be delivered, he said.
Duncan described the recent upgrade of the facility as a “transformational commercial opportunity”.
On Satipharm – the target of its schedule 3 registration – he said capsules containing THC are expected to be available through the Special Access Scheme before the end of 2022, while a 25mg CBD product is soon to launch for the Australian market, joining its existing 50mg product.
“We are anticipating very strong revenue growth for Satipharm over the balance of the financial year,” Duncan said.
Despite regulatory changes in the UK surrounding the quality of data needed to support CBD products, Duncan said British retailers remain committed to “taking the Satipharm product forward”.
“A couple of customers are looking to make Satipharm their anchor product in the CBD category, primarily around its advanced delivery characteristics and benefits,” he said.
Meanwhile, chief executive Peter Crock said the company’s Mildura facility was nearing completion, with mother plants established at its southern facility awaiting transfer to Mildura as soon as licences are received.
“The next six months is going to be exciting in terms of bringing Mildura to life,” he added.
Cann’s shares fell 3.7% to 26c per share over the past five days.
Asked what the catalyst will be to improve the share value, Crock said it was important to “focus on what we’re delivering”.
“It’s absolutely critical that our efficiencies, our path to revenue [and] getting the facility up and running and operational is our key focus,” he said. “The share price will look after itself.”
- Read more: Cann’s Mildura gamble might be about to pay off.