CANN Group Limited
Canaccord Genuity acts as Underwriter, Sole Bookrunner and Joint Lead Manager to a A$78 million private placement and share purchase plan for Cann Group Limited
Canaccord Genuity is pleased to announce the completion of a A$78 million capital raising on behalf of Cann Group Limited (ASX.CAN), consisting of a placement of approximately 27.2 million new fully paid shares, raising gross proceeds of approximately A$68 million, and a share purchase plan to raise A$10 million, both completed at an issue price of A$2.50 per share. Canaccord Genuity acted as Underwriter, Sole Bookrunner and Joint Lead Manager to the transaction.
The placement was upsized following very strong demand from new and existing institutional shareholders, and included a top up facility for major shareholder Aurora Cannabis Inc (TSX:ACB) to increase its shareholding in Cann to 22.9% (from 19.9%). Canaccord was instrumental in securing Aurora Cannabis Inc as a significant cornerstone investor in Cann during the Company’s IPO in May 2017.
Proceeds of the capital raising will fund Cann’s accelerated growth plans, which include the construction of a 16,000 square metre state-of-the-art cultivation facility, and full GMP manufacturing capabilities.
Cann is building a business focused on breeding, cultivating and manufacturing medicinal cannabis for sale and use in Australia. Cann was the first company to be granted the necessary licences to undertake research and to cultivate medicinal cannabis for human use in Australia, and has established a leading position in the emerging Australian medicinal cannabis industry. On 4 January 2017, the Australian government announced that Australian producers of medicinal cannabis will be permitted to export product to overseas markets.
The Canaccord Genuity deal team consisted of Marcus Freeman, Daniel Baohm, Alex Berezner and Nathan Leong.