Cann Group has secured $750,000 in funding through a convertible securities agreement with US-based investor Obsidian Global.
The cultivator said the funds would provide working capital as it works towards its target of becoming EBITDA positive.
The financing is structured as a convertible note – a form of funding that can later be converted into company shares instead of being repaid in cash.
Cann said the securities would mature 18 months after execution and carry no interest.
It follows a previous agreement with Obsidian struck in 2023.
Obsidian Global may convert the securities into shares at $0.015 or at a price linked to Cann’s trading levels, based on a discounted volume-weighted average price (VWAP).
The deal also includes the issue of 18.75 million placement shares, alongside 25 million options exercisable at $0.015, subject to shareholder approval.
The funding comes after Cann Group reported a difficult first half of FY26 following its financial restructure, with revenue falling 30% year-on-year to $4.5 million in the six months to December.