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Cann Group Ltd. (AU:CAN)
ASX:CAN

Cann Group (CAN) AI Stock Analysis

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AU

Cann Group

(Sydney:CAN)

Rating:38Underperform
Price Target:
AU$0.00
▼(-100.00%Downside)
Cann Group Ltd. faces significant financial and operational challenges, as reflected in the low financial performance score driven by high leverage and negative profitability. Technical indicators confirm a bearish trend, and valuation metrics further highlight the lack of profitability and dividend yield. These factors collectively contribute to a low overall stock score.

Cann Group (CAN) vs. iShares MSCI Australia ETF (EWA)

Cann Group Business Overview & Revenue Model

Company DescriptionCann Group Ltd. (CAN) is an Australian-based company operating in the biotechnology and healthcare sectors, focusing primarily on the cultivation and production of medicinal cannabis. The company is engaged in the research, development, and commercialization of cannabis-based products, aiming to supply high-quality cannabis for medicinal purposes. Cann Group Ltd. is committed to advancing the medical cannabis industry through innovation and collaboration with various stakeholders, including healthcare providers and regulatory bodies.
How the Company Makes MoneyCann Group Ltd. generates revenue primarily through the cultivation, production, and sale of medicinal cannabis products. The company's revenue streams include the sale of dried cannabis flower, cannabis oils, and other cannabis-derived products to both domestic and international markets. Cann Group partners with pharmaceutical companies, research institutions, and distributors to expand its market reach and enhance its product offerings. Additionally, the company invests in research and development to improve cultivation techniques and product efficacy, which can lead to new revenue opportunities through patented technologies and formulations. Regulatory approvals and strategic partnerships play a crucial role in the company's ability to access new markets and increase its revenue potential.

Cann Group Financial Statement Overview

Summary
Cann Group Ltd. is experiencing revenue growth, but significant profitability and leverage challenges remain. The company is heavily reliant on debt, which could pose risks if cash flows do not improve. Continued losses and negative cash flow metrics suggest that operational and financial restructuring might be necessary for long-term sustainability.
Income Statement
45
Neutral
Cann Group Ltd. shows a consistent increase in revenue over the years, with a notable jump from 2022 to 2023, reflecting a revenue growth of 11.58%. However, the company is struggling with negative margins, including a gross profit margin of 20.78% and a significant net loss margin of -333.33% in 2024. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies.
Balance Sheet
30
Negative
The balance sheet reveals a high debt-to-equity ratio of 5.21, indicating heavy reliance on debt financing, which can be risky. The equity ratio has decreased significantly over the years to 15.01% in 2024. Additionally, negative return on equity highlights the lack of profitability from shareholders' investments.
Cash Flow
40
Negative
Cash flow analysis shows a negative free cash flow, though it improved from -25.94 million in 2023 to -17.69 million in 2024. The operating cash flow to net income ratio is negative, reflecting challenges in converting revenue to cash. The financing cash flow remains positive, suggesting dependency on external financing.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
15.51M15.37M13.78M6.41M4.29M647.22K
Gross Profit
-3.96M3.19M20.63M11.24M4.25M6.22K
EBIT
-13.19M-27.50M-37.25M-29.07M-23.50M-16.64M
EBITDA
-9.43M-35.54M-17.76M-19.79M-17.29M-13.91M
Net Income Common Stockholders
-47.60M-51.24M-33.79M-26.47M-25.10M-16.94M
Balance SheetCash, Cash Equivalents and Short-Term Investments
60.00K1.64M765.00K1.91M3.10M1.55M
Total Assets
84.97M92.77M129.47M139.66M101.79M76.40M
Total Debt
72.36M72.47M60.97M47.16M680.00K9.32M
Net Debt
72.30M70.83M60.20M45.25M-2.42M7.77M
Total Liabilities
78.65M78.85M70.20M54.76M9.92M15.33M
Stockholders Equity
6.32M13.92M59.26M84.90M91.87M61.07M
Cash FlowFree Cash Flow
-13.90M-17.69M-25.94M-65.60M-37.10M-51.98M
Operating Cash Flow
-13.65M-15.19M-22.84M-20.43M-20.83M-17.62M
Investing Cash Flow
3.43M1.18M-28.00K-45.16M-17.08M-34.36M
Financing Cash Flow
8.53M14.77M21.71M64.41M39.47M7.15M

Cann Group Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.01
Price Trends
50DMA
0.02
Negative
100DMA
0.02
Negative
200DMA
0.03
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
40.08
Neutral
STOCH
22.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CAN, the sentiment is Negative. The current price of 0.01 is below the 20-day moving average (MA) of 0.01, below the 50-day MA of 0.02, and below the 200-day MA of 0.03, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 40.08 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:CAN.

Cann Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUVIT
61
Neutral
AU$45.70M20.294.85%5.76%-79.76%
54
Neutral
$5.37B3.35-45.10%2.79%16.77%-0.01%
AUAGH
45
Neutral
AU$21.39M-218.38%-14.30%29.69%
AUBOD
39
Underperform
AU$4.26M
-49.04%32.85%
AUCAN
38
Underperform
$8.71M-164.01%-18.80%-46.65%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:CAN
Cann Group
0.01
-0.03
-68.89%
AU:BOD
Bod Australia Ltd
0.02
0.00
0.00%
AU:AGH
Althea Group Holdings Ltd.
0.03
<0.01
50.00%
AU:VIT
Cronos Australia Ltd.
0.07
-0.03
-30.00%

Cann Group Corporate Events

Cann Group Limited Announces Cessation of Securities
Jun 6, 2025

Cann Group Limited announced the cessation of several securities due to the lapse of conditional rights, as the conditions for these securities were not met or became incapable of being satisfied. This cessation involves a total of 3,795,886 securities, impacting the company’s issued capital and potentially affecting stakeholder interests.

Cann Group Issues New Unquoted Options to Bolster Growth
Jun 4, 2025

Cann Group Limited announced the issuance of 49,376,573 unquoted options, set to expire on June 4, 2027, with an exercise price of $0.03. This issuance is part of a previously announced transaction, indicating strategic financial maneuvers to support the company’s growth and operational objectives. The move could potentially impact the company’s market positioning by enhancing its financial flexibility and offering stakeholders an opportunity for future engagement.

Cann Group Resolves Legal Dispute with Rua Biosciences, Establishes New Commercial Ties
Jun 3, 2025

Cann Group Limited has resolved its legal dispute with Rua Biosciences Limited by entering into a confidential deed of settlement and release, which includes mutual release from claims and two commercial agreements for Cann to supply medicinal cannabis products to Rua for distribution in Australia and New Zealand. This settlement not only resolves the dispute but also establishes a new commercial relationship between the two companies, potentially impacting their operations and market positioning positively.

Cann Group Issues New Unquoted Equity Securities
Jun 2, 2025

Cann Group Limited has announced the issuance of 7,924,832 unquoted equity securities in the form of options set to expire on June 2, 2027, with an exercise price of $0.0508. This move is part of previously announced transactions and is not intended for quotation on the ASX, potentially impacting the company’s financial strategy and stakeholder interests by expanding its equity base.

Cann Group Issues New Unquoted Equity Securities
Jun 2, 2025

Cann Group Limited has announced the issuance of 1,746,147 unquoted equity securities in the form of options set to expire on June 2, 2027, with an exercise price of $0.0573. This issuance is part of a previously announced transaction and is not intended to be quoted on the ASX, potentially impacting the company’s financial strategy and stakeholder interests by expanding its equity base.

Cann Group Announces Successful Resolutions at General Meeting
May 30, 2025

Cann Group Limited announced the results of its General Meeting, where all resolutions were passed following a poll vote. The meeting included significant decisions such as the election of a director and the ratification of share and option issuances, which are expected to impact the company’s strategic direction and stakeholder interests positively.

Cann Group Limited CEO to Present Strategic Updates at EGM
May 30, 2025

Cann Group Limited announced a presentation by CEO Jenni Pilcher at their Extraordinary General Meeting, focusing on the company’s operations, sales, funding, and strategy. This announcement highlights the company’s ongoing efforts to strengthen its market position and operational capabilities, potentially impacting its stakeholders positively.

Cann Group Limited Announces Quotation of New Securities on ASX
May 20, 2025

Cann Group Limited has announced the application for quotation of 11,607,322 ordinary fully paid securities on the Australian Securities Exchange (ASX) as of May 20, 2025. This move is part of the company’s strategic efforts to bolster its financial position and enhance its market presence, potentially impacting its operations and offering new opportunities for stakeholders.

Cann Group Limited Announces Quotation of New Securities
Apr 30, 2025

Cann Group Limited announced the quotation of 7,676,567 fully paid ordinary securities on the Australian Securities Exchange (ASX), effective April 30, 2025. This move is expected to enhance the company’s capital structure and provide additional liquidity, potentially strengthening its market position and offering more opportunities for stakeholders.

Cann Group Announces EGM to Approve Financing Resolutions
Apr 30, 2025

Cann Group Limited has announced an Extraordinary General Meeting (EGM) scheduled for May 30, 2025, to seek shareholder approval for several resolutions related to recent financing transactions. These include ratifications and approvals for the issuance of shares and options as part of private placements and convertible notes, aimed at securing funding to optimize production and support strategic growth. The board supports these resolutions, which are expected to provide the company with the flexibility to pursue future expansion and growth opportunities.

Cann Group’s Medicinal Cannabis Trial Shows Promise for Tourette Syndrome Treatment
Apr 30, 2025

Cann Group Limited announced the outcomes of a pilot clinical trial investigating medicinal cannabis as a treatment for Tourette syndrome in adolescents. Conducted by the Murdoch Children’s Research Institute and the Royal Children’s Hospital, the trial showed preliminary evidence supporting the efficacy and safety of medicinal cannabis, with high levels of acceptability reported by parents. The study suggests the feasibility of using medicinal cannabis for Tourette syndrome, recommending further research with a larger cohort to confirm these findings.

Cann Group Secures $836k R&D Funding Advance
Apr 28, 2025

Cann Group Limited has secured an $836,469 funding advance from Radium Capital, which provides early access to its expected R&D Tax Incentive for FY2025. This advance will support the company’s strategy of supplying the medicinal cannabis market with unique products, including those sold under its Botanitech brand in collaboration with Chemist Warehouse outlets. The advance, under a loan agreement with a 15% annual interest rate, will be repaid upon receipt of the R&D Refund or by 31 October 2025. This move is expected to bolster Cann Group’s operations and strengthen its market positioning in the medicinal cannabis industry.

Cann Group Ltd. Announces Quotation of New Securities on ASX
Apr 14, 2025

Cann Group Ltd. has announced the application for quotation of 41,876,573 ordinary fully paid securities on the Australian Securities Exchange (ASX) as part of a previously announced transaction. This move is expected to enhance the company’s capital structure, potentially improving its market position and providing greater value to its stakeholders.

Cann Group Ltd. Announces Proposed Issue of Securities
Apr 10, 2025

Cann Group Ltd. has announced a proposed issue of securities, with a maximum of 1,000 ordinary fully paid shares to be issued. This move is part of the company’s strategy to strengthen its financial position and support its operations in the medical cannabis sector. The issuance is expected to have implications for the company’s market positioning and stakeholder interests as it aims to expand its influence in the industry.

Cann Group Limited Issues Prospectus for New Share Offer
Apr 10, 2025

Cann Group Limited has issued a prospectus for the offer of up to 1,000 new shares at an issue price of $0.017 per share, aiming to raise a maximum of $17 before costs. The document highlights that the investment is highly speculative and is not intended for distribution in the United States, emphasizing the need for potential investors to seek professional advice.

Cann Group Secures $712k to Boost Medicinal Cannabis Production
Apr 8, 2025

Cann Group Limited has successfully raised approximately $712,000 through a private placement, issuing shares at 1.7 cents each, a significant discount to recent trading prices. The funds will be used to expand the production of medicinal cannabis flower, supporting a new partnership with Chemist Warehouse in Queensland, and covering production costs, working capital, and offer expenses. This move is a strategic step towards strengthening Cann Group’s position as a leading supplier of medicinal cannabis in Australia.

Cann Group Limited Initiates Trading Halt for Capital Raising Announcement
Apr 4, 2025

Cann Group Limited has requested a trading halt on its securities pending an announcement related to its capital raising activities. This move is intended to help the company manage its disclosure obligations and is expected to be resolved by the commencement of normal trading on April 8, 2025, or when the announcement is made. The trading halt indicates a significant development in Cann Group’s financial strategy, potentially impacting its market positioning and stakeholders.

Cann Group Expands Market Reach with Chemist Warehouse Agreements
Apr 3, 2025

Cann Group Limited has signed supply agreements with eleven Chemist Warehouse pharmacy outlets in Queensland, marking a significant expansion of its market presence. These agreements, which have an initial two-year term, are expected to enhance Cann’s credibility and visibility in the marketplace, leveraging the Chemist Warehouse brand’s extensive reach and potentially leading to further expansion.

Cann Group Partners with Chemist Warehouse for Medicinal Cannabis Supply
Apr 2, 2025

Cann Group Limited has entered into supply agreements with eleven Chemist Warehouse pharmacy outlets in Queensland. This collaboration will see Cann supplying its Botanitech range of medicinal cannabis products, enhancing its market presence and potentially boosting its growth in the medicinal cannabis sector.

Cann Group Ltd. Expands Market Presence with New Securities Issuance
Apr 2, 2025

Cann Group Ltd. has announced the issuance of 1,185 fully paid ordinary securities to be quoted on the Australian Securities Exchange (ASX). This move is part of the company’s strategy to expand its market presence and enhance shareholder value by converting options and other convertible securities.

Cann Group Ltd. Announces New Securities Quotation
Apr 2, 2025

Cann Group Ltd. has announced the issuance of 7,930,438 ordinary fully paid securities, which will be quoted on the ASX. This move is part of the company’s strategy to enhance its capital structure, potentially impacting its market position and providing opportunities for stakeholders as the company continues to expand its operations in the medicinal cannabis sector.

Cann Group Ltd. Appoints New Director
Mar 30, 2025

Cann Group Ltd. has announced the appointment of Peter Kopanidis as a director, effective March 31, 2025. The announcement indicates that Mr. Kopanidis currently holds no securities or interests in the company, suggesting a fresh perspective in the board’s composition. This appointment may impact the company’s strategic direction and governance, potentially influencing its market positioning and stakeholder relations.

Cann Group Announces Board Changes with New Non-executive Director Appointment
Mar 30, 2025

Cann Group Limited has announced changes to its board of directors, with Mr. Peter Kopanidis joining as a Non-executive Director and Mr. Robert Barnes retiring from the same position. Peter Kopanidis brings over 30 years of experience in finance across various industries, which is expected to be beneficial for Cann Group as it navigates its current stage of development. The board chair, Doug Rathbone, expressed gratitude for Robert Barnes’ contributions, particularly his insights into the pharmaceutical sector, and welcomed Peter’s expertise in corporate finance and investor relations.

Cann Group Limited Lodges Cleansing Prospectus for Convertible Securities
Mar 12, 2025

Cann Group Limited has lodged a cleansing prospectus with ASIC and ASX for the issuance of convertible notes, options, and placement shares, following a recent drawdown of convertible securities. The primary aim is to remove on-sale restrictions related to the proposed securities issuance, potentially impacting the company’s financial flexibility and market operations.

Cann Group Ltd. Announces New Financial Prospectus
Mar 12, 2025

Cann Group Ltd. has announced a prospectus for an offer involving convertible notes, ordinary shares, and options, aiming to raise a total of $600,000. This strategic financial move is intended to bolster the company’s capital, potentially impacting its market position and offering stakeholders an opportunity for speculative investment.

Cann Group Ltd. Announces Proposed Securities Issue to Bolster Growth
Mar 12, 2025

Cann Group Ltd. announced a proposed issue of securities, including convertible notes and unquoted options, as well as ordinary fully paid shares. This move is likely aimed at raising capital to support its operations and growth initiatives, potentially strengthening its market position in the medicinal cannabis sector.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.