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Highlights:
- The Cann Group announced the launch of a share purchase plan (SPP) for raising AU$8– AU$10 million.
- The offer price of the share purchase plan is AU$0.22 per share.
- The SPP will begin on 31 October 2022.
Australian healthcare company Cann Group Limited’s (ASX:CAN) shares were spotted trading 14.814% lower on the ASX, at AU$0.230 per share, at 2:45 PM AEDT today (25 October 2022).
Today, Cann Group announced a share purchase (SPP) plan for shareholders to raise an amount between AU$8 million and AU$10 million.
Details of Cann Group’s SPP
Cann mentioned that shareholders eligible for the SPP would get an opportunity to apply for a minimum of AU$500 and a maximum of AU$30,000 of new fully paid ordinary shares. The offer price of the SPP is AU$0.22 per share. The plan is expected to open on 31 October 2022 and close on 18 November 2022.
Cann Group mentioned in its update that the funds collected from the SPP would support its strategic investment in expanding Good Manufacturing Practice (GMP) capabilities at Mildura.
After the completion of the Satipharm acquisition in 2021, the Cann Group transferred its technology to install Satipharm’s manufacturing unit at its flagship Mildura facility. The Mildura facility had also secured a GMP licence from the Therapeutic Goods Administration that approves products produced at Mildura to be used for therapeutic purposes.
The expansion in GMP manufacturing capability will also prepare the company to scale up the production needed to meet the expected demand for Satipharm products, including over-the-counter CBD products, after they become registered S3 medicines.
Furthermore, the amount raised through the SPP will also contribute to: -
- commercial scale encapsulation and packaging.
- the development of THC-containing Satipharm products.
- increasing the capacity and efficiency for GMP-dried flower packing.
In addition, the raised funds will also be used to support the working capital over the medium term while the Company pursues the scale-up of its manufacturing capability.
