Cann Group has secured roughly A$2 million through a rights issue, coming in well short of its A$6.25 million target.
The company described the offer as "well supported" by its existing retail shareholders, with the proceeds allocated toward developing its in-house Botanitech product range, covering dried flower cultivation expenses, partially repaying loans and interest, and meeting working capital needs.
In a statement to the ASX, the company said: "Cann firmly believes that this offer will enable the company to accelerate the growth trajectory and strengthen its current market position to take advantage of the continually developing and expanding market."
Shares will be settled and allotted on Monday, December 2. The offer is non-renounceable, which means investors cannot trade the shares. Any shortfall shares will be made available to sophisticated and professional investors.
Cann Group launched the offer in October with the goal of raising A$6.25 million. The company originally set an October 24 participation deadline before pushing that date back to November 25.