Cann Group has secured an additional A$5 million in debt funding and reissued its half-year results as it battles to solve its financial problems.
The company has drawn down the funds in a lump sum, with interim chief executive Jenni Pilcher saying it will help the firm “continue operations for the next 12 months”.
In a separate announcement last night, Cann Group re-released its interim financial statement with updated comments from its auditor, William Buck.
In the original statement in late February, the auditor said there was insufficient evidence of Cann’s financial security to draw a conclusion, remarks which led the ASX to suspend Cann’s shares.
Following recent developments, including the new $5m cash injection and extension to the repayment of loans, William Buck said there was now “sufficient and appropriate evidence to issue an unmodified conclusion”.
That conclusion, however, continues to cast doubt over the firm’s ability to remain a going concern.
Cann Group, which recently faced questions from the ASX about its solvency, said it will “keep the market updated with further progress regarding the ASX suspension”.
Meanwhile, the loan, secured against Cann’s Mildura facility, has been provided by an unnamed private credit fund and will be repaid in monthly instalments. It must be repaid by May 2025.
Pilcher said: “This facility provides Cann with immediate funding which is necessary to continue operations for the next 12 months.
“Importantly, the funding allows us to accelerate our revenue growth strategies, specifically focusing on the expansion of Cann’s proprietary Botanitech brand.”
This will include new product lines to be released in September, she said.
Pilcher added the company will “continue to manage costs judiciously and ensure our growth is done in a financially responsible manner”.
