NZX-listed Cannasouth (CBD) has gone into voluntary administration with trading in its shares suspended by the regulator.
Earlier this week, the firm was placed in a trading halt at its own request following a dispute with secured convertible noteholders which NZ RegCo said could prejudice a crucial capital raise. “CBD has an urgent need to secure funding to remain solvent,” the regulator added.
A further extension was granted this morning to allow discussions about funding to continue but this afternoon, administrators from Blacklock Rose were called in.
The appointment was made “in consultation with the noteholders who, at the invitation of the board, nominated the administrators”, Cannasouth told the NZX.
It added: “The administrators will be undertaking a detailed review of the operations of Cannasouth with particular focus on identifying the profitable lines of the company’s products and services.
“When that has been completed the administrators will be seeking financial support from shareholders and noteholders to implement that plan.
“It is expected that the review… will take some time to complete as the parent company and its principle trading subsidiary companies are scrutinised.
“In the meantime, Cannasouth continues to support its customers with quality products that meet the strict regulatory requirements that apply to the production and supply of medicinal cannabis.”
Shortly afterwards, Cannasouth announced the resignation of CFO and company secretary Colin Foster, effective from yesterday (March 27).
CEO Mark Lucas said: “Colin was Cannasouth’s first full-time CFO. He joined me as we embarked on our journey to build the first listed medicinal company in New Zealand. On behalf of your colleagues at Cannasouth, we thank you for your contributions.”
