National Australia Bank has told Cann Group it will not be taking action despite the company failing to pay $1.38 million in interest and facility fees due in late August.
Cann Group said it has received a letter of non-waiver in which NAB has reserved its rights but “confirmed it will not be taking any action at this time”.
The letter was “as expected” and followed “recent discussions”, the cultivator said.
The quarterly repayments relate to the company’s property development and working capital facilities which combined total $67.7m.
Cann previously disclosed it was engaging with financiers over its funding arrangements and is expected to provide a market update by the end of September.
Hale Farm
Tasmanian cultivator Hale Farm has adopted Elevated Signals’ manufacturing software to replace paper-based systems and strengthen compliance as it prepared for expansion.
The platform builds operations software for regulated industries, including medicinal cannabis, bringing together inventory, production records, quality assurance and compliance reporting.
Hale Farm co-founder and chief operating officer David Grolman said the move would cut administration and deliver “a five-times productivity saving”.
“With our paper-based system, we were spending at least a day a week on manual data entry. In addition, quarterly ODC reporting would consume the best part of a week,” he said.