Cann Group has obtained $750,000 in new financing through a convertible securities arrangement with US-based investor Obsidian Global.
The cannabis cultivator said the capital would support working capital needs as the company pushes toward achieving EBITDA positivity.
The financing takes the form of a convertible note — a funding structure that allows the investor to convert the debt into company shares rather than receiving a cash repayment.
Cann said the securities will mature 18 months after execution and will carry no interest.
The deal follows a prior agreement with Obsidian reached in 2023.
Obsidian Global has the option to convert the securities into shares at $0.015, or at a price tied to Cann's trading activity based on a discounted volume-weighted average price (VWAP).
The arrangement also includes the issue of 18.75 million placement shares and 25 million options exercisable at $0.015, pending shareholder approval.
The new funding arrives after Cann Group posted a challenging first half of FY26 in the wake of its financial restructure, with revenue dropping 30% year-on-year to $4.5 million for the six months ending December.