Cann Group has raised A$8.18 million through a shareholder capital raise as the cannabis company moves to increase production at its Mildura facility.
The raise drew contributions from 1,254 individual investors.
The total came in at the lower end of Cann's target range of $8m to $10m, with proceeds earmarked for expanding GMP manufacturing at Mildura ahead of expected demand for its Satipharm product line, including over-the-counter CBD.
The capital will also go toward commercial-scale encapsulation and packaging, the development of THC-based Satipharm products, and greater capacity 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," the company said in a statement.
Shares fell 2% in early morning trading to $0.23c.
Chief executive Peter Crock added: "These funds will allow us to execute on important commercial projects and accelerate our 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."
The company told investors last month it was entering a new phase of growth and aiming to reach cash flow positive status "as soon as possible".
Crock said a potential over-the-counter agreement with GSK's consumer healthcare arm, Haleon, had created the need for additional funding to lift production from "thousands of capsules a month to millions".
Cann also said its emphasis on "quality product" placed it in a strong position to grow revenue both within Australia and in international markets.
