Cann Group has obtained an additional A$5 million in debt financing and reissued its half-year financial results as it continues to address its financial difficulties.
The funds were drawn down in a single lump sum, with interim chief executive Jenni Pilcher saying the injection will help the company "continue operations for the next 12 months".
In a separate announcement overnight, Cann Group republished its interim financial statement with revised commentary from its auditor, William Buck.
When the original statement was released in late February, the auditor concluded there was insufficient evidence of Cann's financial security to reach a conclusion, a finding that prompted the ASX to suspend the company's shares.
In light of recent developments — including the fresh $5m cash injection and an extension to loan repayment terms — William Buck said there was now "sufficient and appropriate evidence to issue an unmodified conclusion".
That conclusion, however, still raises doubts about the company's ability to continue as a going concern.
Cann Group, which recently faced questions from the ASX over its solvency, said it will "keep the market updated with further progress regarding the ASX suspension".
The loan, which is secured against Cann's Mildura facility, has been provided by an unnamed private credit fund and is to be repaid in monthly instalments, with full repayment due by May 2025.
Pilcher said: "This facility provides Cann with immediate funding which is necessary to continue operations for the next 12 months.
"Importantly, the funding allows us to accelerate our revenue growth strategies, specifically focusing on the expansion of Cann's proprietary Botanitech brand."
This will include new product lines scheduled for release in September, she said.
Pilcher added the company will "continue to manage costs judiciously and ensure our growth is done in a financially responsible manner".
