Cann Group's shares will stay suspended from trading on the ASX, even after the company restated its half-year financial results and secured new funding.
The ASX compliance unit issued a statement this afternoon confirming that Cann's shares will remain frozen until the company's financial position meets the exchange's requirements.
ASX listing rule 12.2, which governs the financial health of listed entities, must be satisfied before any reinstatement to trading can occur.
The rule requires that an entity's financial condition, including operating results, "must, in [the] ASX's opinion, be adequate to warrant the continued quotation of its securities and its continued listing".
Cann Group's shares were suspended by the ASX on March 1 after the company's auditor determined there was insufficient evidence of future funding.
After a A$5 million cash injection and an agreement to extend loan repayment terms, auditor William Buck reviewed the financial position and concluded there was "sufficient and appropriate evidence to issue an unmodified conclusion".
Despite this, the auditor maintained concerns about Cann's ability to continue as a going concern, given significant losses and a $64 million debt tied to its Mildura facility.
"CAN's securities will continue to be suspended… until such time that the ASX is satisfied with CAN's compliance with the listing rules and that it is otherwise appropriate for CAN's securities to be reinstated to quotation," the ASX said.
Cann Group has been approached for comment.
