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Cann Group ( (AU:CAN) ) has shared an update.
Cann Group has entered into a new convertible securities agreement with Obsidian Global GP to raise A$750,000 before costs, providing working capital to support its push toward EBITDA profitability. The arrangement involves the issue of convertible securities with a face value of US$1.15, a fixed premium conversion price of $0.015, variable and default conversion mechanics tied to VWAP, and a maximum of 195 million shares issuable without prior shareholder approval.
The deal includes 18,750,000 placement shares and a proposal, subject to shareholder approval, to issue 25 million options exercisable at $0.015, or alternatively a A$50,000 cash payment if not approved. The structure also gives Obsidian flexible conversion and redemption rights, including the ability to trigger redemptions linked to future fundraisings, underscoring both the company’s near-term capital needs and the potential dilution risk for existing shareholders.
The most recent analyst rating on (AU:CAN) stock is a Sell with a A$0.01 price target. To see the full list of analyst forecasts on Cann Group stock, see the AU:CAN Stock Forecast page.
More about Cann Group
Cann Group Limited is an Australian cannabis company listed on the ASX under the ticker CAN. The company operates in the medicinal cannabis sector and is focused on developing and supplying cannabis-based products, with an emphasis on achieving a sustainable, EBITDA-positive business model in its domestic market and potentially broader regions.
Average Trading Volume: 14,048,883
Technical Sentiment Signal: Sell
Current Market Cap: A$11.12M
For detailed information about CAN stock, go to TipRanks’ Stock Analysis page.