Cannasouth has completed the issuance of NZ$1.22 million in convertible notes following the execution last month of a Deed of Company Arrangement (DOCA) that was put in place to prevent the company from being wound up.
Participation in the offer is limited to wholesale investors, eligible investors, and close business associates as those categories are defined under the Financial Markets Conduct Act 2013.
The notes carry a 24-month term and an interest rate of 10%. At expiry, holders may redeem them for cash, or they can be converted — in whole or in part — into ordinary shares in the NZX-listed company at a price of three cents per share at any point before that date.
Any exercise of conversion rights is contingent on shareholder approval, which must be obtained on or before January 31, 2026.
Cannasouth entered voluntary administration in March after the company encountered serious financial difficulties.
In June, a group of undisclosed investors put forward the DOCA, proposing to inject between NZ$1.5 million and NZ$3 million into the business through convertible notes, with the funds earmarked for creditor repayments and working capital. The arrangement was formally executed in July.
