Cannasouth (CBD) has been placed in a trading halt at its own request following a dispute which could prejudice a crucial capital raise.
New Zealand’s listed market regulator NZ RegCo said CBD sought the trading halt as it is in dispute with some of its secured convertible note holders “which has the potential to prejudice an urgent additional capital raise [it] is seeking to finalise and announce to market”.
“CBD has an urgent need to secure funding to remain solvent,” the regulator added.
The halt would enable discussions between CBD, the secured convertible note holders and some of its shareholders to try to resolve the dispute and obtain certainty of funding.
“CBD cannot be sure that all investors and the market will have equal information while it completes discussion prior to making a market announcement about a capital raise, and is concerned that there could be a disorderly market for its ordinary shares,” the regulator said.
The trading halt will remain in place until the earlier of an announcement from CBD in relation to the discussions and capital raise or when the market opens on Thursday (March 28).
UPDATE (March 28, 2024): CBD has requested a further trading halt as it continues discussions with representatives of its secured convertible note holders.
The regulator said CBD is also engaged in discussions with third parties about providing additional short-term funding and is exploring restructuring options.
The trading halt will now remain in place until the earlier of an announcement from CBD in relation to the discussions and capital raising and the market opening on April 2.
