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CANN GROUP LIMITED — Capital/Financing Update 2021
Aug 1, 2021
64603_rns_2021-08-01_a8aacb84-31df-4206-9a83-b8d33a706c40.pdf
Capital/Financing Update
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ASX ANNOUNCEMENT
2 August 2021
Results of $10.0 million institutional placement to support investment in expanded production capabilities and accelerated growth opportunities
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Results of placement, raising $10.0 million
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Proceeds from capital raising will be used to invest in supply chain and expanded production capabilities, as well as providing additional resources to support growth of Satipharm business
2 August 2021 – Cann Group Limited (ASX: CAN) ( Cann or the Company ) is pleased to confirm that it has completed the settlement and allotment of the shares pursuant to the institutional placement ( Placement ) as announced by the Company on Monday 26 July 2021 and which closed on Friday 23 July 2021. As also announced on 26 July 2021, the Company will be seeking to raise a further $10.0 million under a Share Purchase Plan ( SPP ) which will be subject to shareholder approval.
Placement results
The Company received applications for 36,363,636 new fully paid ordinary shares ( New Shares ) amounting to total subscriptions of $10.0 million under the Placement. 32,472,724 of the New Shares have been issued (with receipt of $8.93 million less transaction costs). The remaining 3,890,912 New Shares (being for $1.07 million in funding) will be issued to related parties upon receipt of shareholder approval, as described further below.
The proceeds from the Placement will be used to invest in projects and activities which are expected to enable the Company to accelerate growth and generate substantial cost savings.
New Shares issued under the Placement have been issued under Cann's available capacity under ASX Listing Rule 7.1.
The number of shares on issue in the Company after the issue of New Shares under the Placement (excluding those to be issued to related parties) is 310,591,617. An Appendix 2A in respect of the issue of shares under the Placement was provided to the ASX on Friday 30 July 2021. The New Shares issued under the Placement commenced trading today.
Participation by related parties
The following directors and related parties participated in the Placement:
| Name and position | Position | New Shares applied for |
|---|---|---|
| Allan McCallum | Chairman | 545,455 |
| Philip Jacobsen | Deputy Chairman | 2,727,273 |
| Doug Rathbone | Director | 363,637 |
| Geoff Pearce | Director | 181,819 |
| John Sharman | Director | 72,728 |
| Total | 3,890,912 |
Cann Group Limited ACN 603 949 739
4 Research Avenue, Bundoora, VIC 3083 Australia Ph: +61 3 9095 7088
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The issue of New Shares to the related parties listed above is conditional upon the Company obtaining shareholder approval in accordance with Listing Rule 10.11. The Company intends to hold an extraordinary general meeting ( EGM ) to obtain the requisite approval in early September. Details of the EGM will be provided to shareholders shortly.
Proposed Share Purchase Plan
As announced to the market on 26 July 2021, the Company is also proposing a Share Purchase Plan ( SPP ) to raise $10.0 million. The issue price under the SPP will be $0.275, which is equal to the issue price in respect of New Shares applied for under the Placement. To enable the SPP to proceed at the same issue price as the Placement, and given the Placement will utilise a significant portion of Cann's placement capacity under ASX Listing Rule 7.1, Cann will be seeking shareholder approval to conduct the SPP. Further details of the terms of the proposed SPP will be set out in a Notice of Meeting for the upcoming EGM which is scheduled for early September. Assuming that shareholders approve the SPP, the SPP offer will be undertaken as soon as possible after that EGM.
Authorised for release by the Board of Directors of Cann Group Limited.
For all media enquiries please contact:
Matthew Wright NWR Communications +61 451 896 420 [email protected]
For all other information please contact:
Peter Crock Clive Fanning CEO Head of Investor Relations Cann Group Limited Cann Group Limited +61 3 9095 7088 +61 3 9095 7088 [email protected] [email protected]
About Cann Group
Cann Group Limited (ABN 25 603 949 739) is building a world-class business focused on breeding, cultivating, manufacturing and supplying medicinal cannabis for sale and use within Australia and for approved overseas export markets. Cann also owns Satipharm, a Europe-based business exclusively licensed to manufacture, develop and market the proprietary Gelpell delivery system for cannabinoids. Cann has established research and cultivation facilities in Melbourne and is developing a state-of-the-art cultivation and manufacturing facility near Mildura, Victoria. Cann Group has established a leading position in plant genetics, breeding, extraction, analysis and production techniques required to facilitate the supply of medicinal cannabis for a range of diseases and medical conditions. The Company is commercialising a range of imported and locally sourced and manufactured medicinal cannabis products.
Learn more at: www.canngrouplimited.com | www.satipharm.com
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