Cann Group Secures $9M Loan and $9M Capital Raise Amid Debt Restructure
Cann Group Limited has finalized a $15.3 million settlement with National Australia Bank, releasing all security and closing loan facilities as part of a broader debt restructuring. The company is advancing a $9 million new loan and a $9 million capital raise, including a share purchase plan closing November 17.
- Settlement deed executed with NAB to release all security and close loans
- Payment of $15.3 million completes NAB debt settlement
- New $9 million loan and extension of $5.45 million loan secured from private credit fund
- Capital raise includes $6.5 million institutional placement and $2.5 million share purchase plan (SPP)
- SPP offers shares at $0.0115 with attaching options subject to shareholder approval
Debt Settlement with NAB Marks Key Milestone
Cann Group Limited has taken a significant step in its financial restructuring by executing a settlement deed with National Australia Bank (NAB). The agreement involves a payment of $15.3 million, which releases the company from all security interests and closes its loan facilities with NAB. This move effectively clears the company’s mortgage liabilities, providing a cleaner balance sheet and greater financial flexibility.
New Financing and Capital Raising Initiatives
Alongside the NAB settlement, Cann Group has secured a new $9 million loan and extended an existing $5.45 million loan with a prominent Australian private credit fund. These new credit arrangements are designed to support the company’s ongoing operations and strategic growth plans. Complementing this debt restructure is a capital raise comprising a $6.5 million institutional placement and a $2.5 million share purchase plan (SPP), aimed at bolstering the company’s equity base.
Share Purchase Plan Details and Investor Incentives
The SPP, which closes on November 17, 2025, offers eligible shareholders the opportunity to acquire new shares at a discounted price of $0.0115 per share. Notably, each share issued under the SPP will come with attaching options, subject to shareholder approval at an extraordinary general meeting expected in December. These options provide additional upside potential for investors, exercisable at $0.0115 in mid-2026 and a further 'piggyback' option exercisable at $0.0285 in 2028.
Strategic Implications and Market Confidence
The company’s board has expressed appreciation for the strong support from institutional investors and shareholders participating in the placement and SPP. This backing reflects confidence in Cann Group’s strategic direction and its prospects in the medicinal cannabis sector. With operations centered in Melbourne and a state-of-the-art manufacturing facility near Mildura, Victoria, Cann Group continues to develop and supply innovative cannabis medicines globally.
Looking Ahead
As Cann Group moves toward finalizing its capital raise and securing shareholder approvals for the attaching options, market participants will be watching closely. The successful execution of these initiatives will be critical to the company’s financial stability and ability to capitalize on growth opportunities in the evolving pharmaceutical cannabis market.
Bottom Line?
Cann Group’s debt settlement and capital raise set the stage for renewed growth, but shareholder approval and market response remain pivotal.
Questions in the middle?
- Will shareholders approve the attaching options at the upcoming extraordinary general meeting?
- How will the new loan terms impact Cann Group’s financial flexibility and cost of capital?
- What are the company’s plans to leverage the strengthened balance sheet for growth in the competitive cannabis sector?
