Cann Group shares will remain suspended from trading on the ASX despite the firm re-issuing its half-year results and obtaining additional funding.

In a statement issued this afternoon, the ASX compliance unit said Cann’s shares will remain frozen until its financial position improves.

Under ASX rules, a company will only be reinstated once it complies with listing 12.2 which governs the financial health of a business.

The rule states that an entity’s financial condition, including operating results, “must, in [the] ASX’s opinion, be adequate to warrant the continued quotation of its securities and its continued listing”.

Cann Group’s shares were suspended by the ASX on March 1 after the firm’s auditor found there was insufficient evidence of future funding.

Following a A$5 million cash injection and an extension to the repayment of loans, auditor William Buck re-examined the financial picture and found there was “sufficient and appropriate evidence to issue an unmodified conclusion”.

However, the auditor continued to express concerns over Cann’s ability to remain a going concern amid heavy losses and a $64m debt in relation to its Mildura facility.

“CAN’s securities will continue to be suspended… until such time that the ASX is satisfied with CAN’s compliance with the listing rules and that it is otherwise appropriate for CAN’s securities to be reinstated to quotation,” the ASX said.

Cannabiz has approached Cann Group for comment.

Steve has reported for a number of consumer and B2B titles over a journalism career spanning more than three decades. He is a regulator contributor to health journal, The Medical Republic, writing on...

Leave a comment