- The latest investment from Cann Global's (CGB) noteholders will see the company walk into the new year debt-free
- Two of the medicinal cannabis stock's investors have opted to transform their convertible notes into equity, wiping roughly $3 million in debt from the company's balance sheet
- That means Cann won't have to fork out millions to repay the notes, meaning it can use funding from a recent $3.75 million placement for working capital
- Cann believes the investment marks further confidence in its business and will support the company in its latest phase of growth
- Cann shares are down 11.5 per cent to trade at 1.2 cents at 10:54 am AEDT
The latest investment from Cann Global's (CGB) noteholders will see the company walk into the new year debt-free.
L1 Capital and Obsidian — two companies which own convertible notes in the medicinal cannabis stock — have opted to convert their holding into equity.
That means the $3.75 million Cann raised earlier this week via a placement can be used for general working capital, not paying off roughly $3 million in notes as originally intended.
As a result, Cann's executives claim the placement capital will support the company in its next phase of growth
"We are pleased at the overwhelming support of the company that has been shown by the investment community over the past few days," Cann Managing Director Sholom Feldman stated today.
"This is a significant milestone for the company, that not only will the company be debt-free, with a clean and strong balance sheet, but will now also no longer need to pay these liabilities, and will therefore have these additional funds available to further develop the company’s diverse and growing businesses through what is a very active and promising period of growth for Cann Global," Sholom continued.
L1 Capital and Obsidian will transform their notes into equity at the same price at which the placement was conducted.
Cann shares are down 11.5 per cent to trade at 1.2 cents at 10:54 am AEDT.