The Cann Group Ltd (ASX: CAN) share price is trading lower on Friday after raising funds for working capital requirements.
In morning trade the cannabis company's shares are down 3% to $1.27.
What did Cann Group announce?
This morning Cann Group revealed that it has successfully completed the issue of convertible notes to raise $8 million. These funds will be used for working capital requirements.
The offer was made to sophisticated, professional, and other investors who qualified under section 708 of the Corporations Act 2001.
According to the release, the convertible notes are fully paid, unsecured, subordinated, and convertible on or before February 10 2022.
They can be converted at the lower of 70 cents per share, the volume weighted average price of its shares during the five trading days following the most recent capital raise of more than $5 million, or the issue price of a capital raise of more than $5 million multiplied by 0.85.
The company's CEO, Peter Crock, was pleased with the support it received for the offer.
He said: "It is very pleasing to have strong investor support as we progress discussions with a Tier 1 Australian bank on a loan facility and finalise details of the funding package for the staged commissioning of our Mildura production facility."
"Our revised business plan will focus on producing value-added medicinal cannabis products for the domestic Australian market while export opportunities continue to be developed," he added.
Revised business plan.
At the end of last month Cann Group revealed its aforementioned revised business plan.
Due to the current demand-supply imbalance in the global medicinal cannabis market, Cann has developed an updated business plan that focuses on initially meeting Australian domestic demand while it develops export markets.
It will continue to develop and commercialise value-added GMP grade finished products to meet Australian domestic demand. This includes the utilisation of its wholesale and distribution agreement with Symbion Health to deliver finished product through pharmacies and hospitals across Australia.
