Cann Group shares fell sharply today (Tuesday) despite the company bolstering its finances by raising $712,000 through a private placement with new and existing sophisticated investors.
Proceeds will be used to expand production of new strains of flower at its Mildura facility and to fund the supply of oils and gummies.
But its share price was hit, falling 22% to close on $0.021c per share.
Chief executive Jenni Pilcher said the placement provides “important funds” as it continues its quest to become a “leading Australian supplier of medicinal cannabis in various formats”.
A total of 41.8 million shares were issued under the placement, at 1.7c per share.
Participants will also receive one attaching option for each share subscribed for, with an exercise price of 3c and an expiry date of 24 months.