Cann Group shareholders have been granted an additional four weeks to take part in the company's ongoing capital raise, with management continuing to outline an optimistic outlook for the business.
At the company's annual general meeting today, chairman Julian Chick said Cann Group's priority was achieving break-even EBITDA, describing the rights issue as a key component of reaching that goal.
The company had been through a "significant period of adjustment and growth", he said, but was committed to delivering a "positive and prosperous future for Cann".
Having restructured its operational cost base, the company was now focused on "reviewing our revenue streams to maximise efficiency and profitability", Chick told shareholders.
"On October 7 the company launched a rights issue…and is targeting to raise A$6.25 million," he said. "These will be important funds to facilitate the achievement of our EBITDA break-even goal."
Cann Group originally set an October 24 deadline for participation, then pushed it back to October 31. The window has now been extended again, with shareholders having until November 25 to take part.
If the company reaches its maximum fundraising target, close to $2m will go toward the partial repayment of loans and interest, $1.56m toward dried flower cultivation costs, and $1m toward importing its in-house Botanitech product range.
Whether shareholders will back the business through the rights issue is yet to be seen. When announcing the plan last month, Chick said the decision to return to investors for additional funding was "not taken lightly".
