Cann Group Ltd (ASX: CAN) shares are flying after the company held its annual general meeting (AGM) this morning. The Cann share price has gained 25.71% so far today, rising to a price of 44 cents.
What Cann does
Cann is an Australian cannabis producer, manufacturer and distributer located in Melbourne. The company supplies medicinal cannabis throughout Australia and in approved overseas export markets. Through its advanced cultivation facility near Mildura the company is focused on commercialising a range of imported and locally sourced and manufactured medicinal cannabis products.
The company was first listed on the ASX in mid 2017, but despite an initial surge the stock has struggled to perform in recent years. Cann currently trades at 44 cents and boasts a market cap of $118 million.
Whats driving Cann’s share price?
This morning Cann’s chair and CEO, Allan McCallum and Peter Crock, held the company’s AGM. Subsequently the presentation for the meeting was also released.
The pair spoke about the challenges that have faced the company during 2020, and their plans for the future.
It was noted that COVID-19 is causing regulatory delays both locally and overseas. Inevitably, this has impacted sales revenue from the first half of the year. As a result, the projected revenue will be weighted heavily towards the second half of the year.
The company is due to ship 10,000 bottles of its product to Germany and the UK in the coming months. This will be the single largest export of Australian grown and manufactured cannabis to date.
On the back of this information, the company reaffirmed its guidance of approximately $15 million for FY21.
In an aim to grow the company, it was also announced that Cann’s Mildura facility will be receiving an upgrade. The Nab facility announced yesterday will be utilised in the upgrade process.
It is expected that remobilisation of the construction team in Mildura will occur on February 2021, with the first crop to be manufactured and released by March 2022.