THE Cann Group has successfully raised $8.18 million through shareholders to expand its Mildura-based production facility.
Cann Group Limited confirmed on Monday that the Share Purchase Plan (SPP) offer to 1254 shareholders had raised the funds which would contribute to the company’s investment in expanding manufacturing capabilities at Mildura.
The company said this was in preparation for the scaling up of production which is needed to respond to the expected significant demand for Satipharm products, including over-the-counter cannabidiol products once they become available as registered S3 medicines.
Investments will also contribute to commercial scale encapsulation and packaging; the development of THC-containing Satipharm products; and increasing capacity and efficiency for GMP dried flower packing.
Funds will also be used to assist with working capital over the medium term, while the company pursues both the scale-up of manufacturing capability and the preparation and submission of a registration dossier for the Satipharm S3 capsule product.
Cann Group CEO Peter Crock said the funds would allow the company to execute on important commercial projects and accelerate the path towards a positive cashflow position.
“We are encouraged by the strong support of our shareholders and are looking forward to an exciting year ahead,” he said.
