Cann Global has entered the seventh month of a trading halt as the company continues to assess its future.
In an update to the ASX, the firm said it was prioritising “fund preservation” over expenditure as well as reviewing the long-term viability of its brands, including health and wellness business Grass Roots.
Cost-cutting has also continued with chief executive Sholom Feldman taking a 50% pay cut while shares remain in voluntary suspension.
In what has become a familiar pattern for shareholders, Cann Global requested a further extension to the suspension, this time until April 28, pending the announcement of a proposed acquisition.
Shares were first suspended on September 23, 2022, when they were worth A$0.021c.
According to its annual report, Feldman took home $312,000 in salary and fees in the 2022 financial year. He will now earn half that while the firm’s shares remain suspended.
“The cost-cutting measure reinforces his commitment to building the business and reflects his desire to preserve shareholder wealth during the proposed acquisition process,” Cann Global said in the statement.
The company said it, and the wider industry, was facing a number of challenges, including “delays” that were beyond its control.
“These delays have required continual readjustments of our key business strategies, timelines and trajectory while dealing with the challenges of global supply issues, government regulatory delays and a difficult economic trading environment as sharp rises in interest rates continue to impact investor and business confidence,” it said.
More positively, the firm said it was carrying zero debt and has “solid forward-operating funds”.
Elixinol Wellness has raised A$1.25 million in a placement and is seeking a further $1m via a share purchase plan (SPP) as the scramble to secure more capital in the cannabis sector shows no sign of slowing.
The funds will provide working capital for the company, support the proposed acquisition of The Sustainable Nutrition Group and fund near-term growth initiatives.
News of the raise came as the firm announced the departure of non-executive directors Oliver Horn, its former CEO, and Elixinol co-founder Paul Benhaim.
The company said the scaled-down board is in line with its strategy to reduce corporate costs.
While the SPP will be made available to all eligible shareholders, Elixinol said the offer has been underwritten, meaning it is guaranteed to raise the $1m even if investor interest is limited.
“The company has received binding commitments for investors to take up any SPP shortfall shares up to $1m, with the SPP to be underwritten for the full $1m,” chief executive Ron Dufficy said.
The company said the placement had been backed by institutional, sophisticated and high net worth investors.
Shares were offered at $0.018c per share, a 25% discount on the closing price on March 31.
Under the SPP – offered at the same price as the placement – shareholders can apply for up to $30,000 worth of shares.
In a statement, the company paid tribute to departing board directors Horn and Benhaim, the latter of whom was a co-founder of Elixinol and Hemp Foods Australia.
“Mr Benhaim has been instrumental in creating innovative products for the company and establishing the Elixinol and Hemp Foods Australia brands,” it said, adding he had been a “pioneer” of the hemp industry.
He remains a significant shareholder.
Horn, who served as CEO from 2020 until 2022, brought “valuable insights and international health and wellness experience” to the board, the firm said.
Bod Science has completed recruitment for its phase IIb clinical trial as it seeks to prove its soft-gel CBD capsule can ease symptoms associated with insomnia.
All 198 patients have now been enrolled with the final patient expected to complete the trial by June.
Bod is conducting the study in collaboration with the Woolcock Institute of Medical Research with management hoping the results will underpin an over-the-counter (OTC) registration with the Therapeutic Goods Administration (TGA).
Chief executive Jo Patterson said: “We’re thrilled to report that we’ve met our target of 198 patients. With a number of key milestones in near sight, we’re anticipating the trial to provide suitable data for application to register and commercialise a new, low-dose CBD product for the Australian schedule 3 market.”
AusCann has sold its R&D facility in Western Australia for A$6.75 million with the company set to use the funds on a “proposed material acquisition” and working capital.
The firm, whose shares remain suspended as it continues to map out its future, has struck a conditional deal to sell the Wangara facility to commercial property investor Optral.
The sale is expected to complete on June 8.
A previous deal to sell the facility for $7m fell through in October.
AusCann last month offloaded 52% of animal health brand CannPal to founder Layton Mills.
IvyMed Clinic has opened for face-to-face consultations in the Melbourne suburb of Vermont South following the success of its operation in Adelaide.
IvyMed GPs work with patients and their regular doctor to tailor treatment plans which may include medicinal cannabis, physical therapy or supplements for chronic pain and mental health issues.
Located within the Atara Compounding Pharmacy, the clinic’s Authorised Prescribers consult with and review patients face-to-face through an eligibility test, GP referral, health summary and final assessment regarding appropriate treatment.
Specialist advice and dispensing is also via Atara’s onsite pharmacists.
IvyMed Clinic GP Dr Anita Nesarajah said: “Some alternative treatments such as medicinal cannabis are only considered when patients have been unable to find relief through other options.
“It’s rewarding that we are able to offer them an alternative solution to their often chronic and sometimes debilitating conditions.”
Botanix Pharmaceuticals has raised A$10 million from institutional investors in a move to accelerate the launch and marketing activities of its treatment for excessive sweating.
The ASX-listed company said its Sofpironium Bromide (SB) gel, which treats primary axillary hyperhidrosis, is on track for approval by the US Food and Drug Administration (FDA) in September.
The placement will fund completion of the FDA review, manufacturing, milestone payments and help Botanix prepare for the commercial launch of SB in the US.