NAB Facility Expiry Extended to November as Cann Group Agrees $15.3M Payment
Cann Group Limited has secured a short-term extension on its National Australia Bank debt facilities and is finalising a $15.3 million settlement deed to release all associated securities.
- NAB debt facility expiry extended from October to November 2025
- Forbearance settlement deed with NAB includes $15.3 million payment
- Release of all property mortgages and securities upon settlement
- Settlement deed execution expected by November 11, 2025
- All other facility terms remain unchanged
Extension Secured Amid Financial Negotiations
Cann Group Limited, a key player in the Australian medicinal cannabis sector, has announced a short-term extension of its debt facilities with National Australia Bank (NAB). Originally set to expire in October 2025, these facilities will now remain active until November 11, 2025. This extension provides the company with a critical window to finalise ongoing financial arrangements.
Settlement Deed Signals Progress
Alongside the extension, Cann Group has entered into a forbearance settlement deed with NAB, its major financier. The agreement involves a payment of $15.3 million, which will trigger the release of all security interests and mortgages NAB holds over the company’s properties. This move is significant as it clears the way for Cann Group to regain full control over its assets, potentially improving its financial flexibility.
Final Steps and Unchanged Terms
The settlement deed is currently in its final stages of review and is expected to be executed on or before November 11, 2025. Importantly, all other terms of the NAB facilities remain unchanged, indicating that the company’s broader financing arrangements are stable for the time being. This stability may reassure investors concerned about the company’s short-term liquidity and credit risk.
Strategic Implications for Cann Group
Cann Group operates advanced cultivation and manufacturing facilities in Victoria, supplying medicinal cannabis products domestically and internationally. The resolution of its NAB facility issues could enable the company to focus more on its core operations and growth initiatives, including leveraging its patent-protected capsule technology through its Satipharm subsidiary. However, the relatively short extension period underscores the urgency of finalising financial arrangements.
Looking Ahead
While this announcement marks a positive step in Cann Group’s financial management, the company’s ability to meet the $15.3 million payment and fully execute the settlement deed will be closely watched. The outcome will have material implications for its balance sheet and operational freedom moving forward.
Bottom Line?
Cann Group’s financial reprieve buys time, but the coming weeks will test its ability to secure lasting stability.
Questions in the middle?
- Will Cann Group successfully execute the settlement deed by the November 11 deadline?
- How will the $15.3 million payment impact Cann Group’s cash flow and capital structure?
- What are the company’s plans if further extensions or refinancing become necessary?
