Cann Group has raised approximately A$2 million via a rights issue but fell short of its $6.25m target.
The firm said the offer was “well supported” by its existing retail base with funds earmarked for the development of its in-house Botanitech product range, dried flower cultivation costs, the partial repayment of loans and interest and for working capital.
The firm told the ASX: “Cann firmly believes that this offer will enable the company to accelerate the growth trajectory and strengthen its current market position to take advantage of the continually developing and expanding market.”
Settlement and allotment of shares will occur on Monday (December 2). The offer is non-renounceable, meaning the shares cannot be traded. Shortfall shares will now be offered to sophisticated and professional investors.
Cann Group launched the offer in October, aiming to raise $6.25m. The firm initially set a deadline to participate of October 24 before extending it to November 25.
