CANN GROUP LIMITED (CAN)

The suspension of trading in the securities of Cann Group Limited is expected to be lifted from the commencement of trading on Tuesday, 4 June 2024 following its compliance with ASX's reinstatement conditions.

Cann Group provides financial update to its 31 March 2024 Appendix 4C Quarterly Cash Flow Report.

The Company issued a pro forma consolidated statement of financial position reviewed by the Company's independent auditor as requested by the ASX in connection with the re-quotation of the Company's securities.

The chairman of the company releases a letter to shareholders. Peter Koetsier resigned as CEO in March 2024, and Ms. Jenni Pilcher became Executive Director & Interim CEO. Tony Di Pietro became CFO in April 2024. The company was suspended by the ASX after its initial half-year report on 29 February 2024. Since then, Cann has implemented initiatives to reduce operational costs and optimize revenue, including securing $5 million in debt funding, implementing a cost-saving program, selling surplus fixed assets, and selling finished product inventory. The company has undergone an internal restructure, reducing permanent staff by over 10% and enhancing production efficiency to control operating costs and target sales for profitability. Cann focuses on producing high-quality, GMP medical cannabis products and plans to provide shareholders with regular updates on its progress.

The securities of Cann Group Limited were suspended from quotation under Listing Rule 19.11A (b) on Wednesday, 1 March 2024 in relation to the disclaimer conclusion of the independent auditor in its review of CAN's half year financial report for the period ended 31 December 2023. CAN's securities will continue to be suspended under Listing Rule 17.3 until such time that ASX is satisfied with CAN's compliance with the Listing Rules, including Listing Rule 12.2, and that it is otherwise appropriate for CAN's securities to be reinstated to quotation.

The company lodges a re-issued Appendix 4D and Half Year Report.

The company has secured a $5 million secured debt facility from an Australian private credit fund, providing immediate funding for the company's operations for the next 12 months. The facility allows Cann to accelerate revenue growth strategies, focusing on the expansion of its proprietary Botanitech brand. The funding will be used to introduce innovative new product lines for release in September. The Principal is subject to 15% interest per annum, payable monthly in arrears, and has a maturity date of 7 May 2025. The Facility is secured over Cann's Mildura property as a second mortgage behind the National Australia Bank. In addition to monthly interest, the Facility includes upfront fees of 3% of the Principal, a $65,000 work fee, and a 1% broker fee, along with customary legal costs.

The company releases its Quarterly Activities Report and Appendix 4C.

The company releases a response to ASX Query.

The Company has received the final payment of $1.9 million from SatiVite Pty Ltd for the sale of business assets at is formerly owned Southern cultivation and manufacturing facility. SatiVite was recently granted a licence from the Office of drug Control to operate the Southern Facility, which was the final condition of an asset sale agreement to trigger this payment.

The Company has executed a sale and purchase agreement for $1.7 million and an extension of its NAB working capital facility to 31 March 2025. Cann Group has reached terms with Biortica Agrimed Ltd for the sale of a range of equipment surplus to Cann's needs. Cann has executed the extension of the Company's debt facility agreement with National Australia Bank.

The securities of Cann Group Limited will be suspended from quotation immediately under Listing Rule 17.3, pending compliance with Listing Rule 19.11A (b) in relation to the disclaimer conclusion of the independent auditor in its review of CAN's half year financial report for the period ended 31 December 2023.

The suspension of trading in the securities of Cann Group Limited will be lifted immediately following the release by CAN of an announcement regarding a capital raise.

The Company has raised A$2 million via entry into a convertible securities facility. Cann will have access to further drawdowns of up to A$13 million in total (with no one drawdown being more than A$3 million) being subject to agreement between the parties. The funds raised will provide working capital to assist the Company in achieving its target of an annual rate of production of 12.5-tonne, which is forecast to be delivered during FY25. Cann has entered into an unsecured convertible securities facility with Obsidian Global GP, LLC. Under the Facility, Cann and Obsidian have agreed to a first drawdown of A$2 million, with further drawdowns of up to A$13 million in total (with no one drawdown being more than A$3 million) being subject to agreement between the parties.

The securities of Cann Group Limited will be suspended from quotation immediately under Listing Rule 17.2, at the request of CAN, pending the release of an announcement regarding a capital raise.

listed entity carried for record purposes only