Cann Group has received a final payment of A$1.9 million from Sativite, completing the sale of business assets at the company's former Southern cultivation and manufacturing facility.
Cann originally agreed to sell the Melbourne facility to Sativite in January 2023 under a deal valued at nearly $5.5m.
The agreement was structured in two stages, with Sativite first purchasing the land and building for $3.1m while granting Cann a lease to continue running operations at the site on its behalf.
In the second stage, Sativite was to acquire Cann's business assets at the facility for $1.9m, with settlement contingent on Sativite obtaining its licence from the Office of Drug Control (ODC) to operate there.
That licence was recently granted to Sativite, which triggered the final payment.
Cann Group has brought its cultivation and manufacturing operations together at its Mildura facility, while research and development activity continues in Bundoora, Victoria.
The payment news follows the announcement by CEO Peter Koetsier yesterday that he will be departing the role at the end of the financial year.
