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Cann Global (ASX:CGB) to raise $3.75M to clear liabilities
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  • Cann Global (CGB) has revealed it will be undertaking a share placement to raise $3.75 million
  • All up, 750 million fully-paid ordinary shares will be issued to professional and sophisticated investors at 0.5 cents
  • Participants will also receive options, exercisable at 1.2 cents with expiry on January 31, 2022
  • These options will be issued in two phases with phase one set to issue 125 million options at the same time as the placement
  • Subject to shareholder approval is the issue of phase two options and 15 million additional options to brokers of the placement
  • Cann Global will use $3 million to clear its liabilities while the remaining will be used for general working capital
  • Company shares are up a strong 83.3 per cent and are trading at 1.1 cents

Cann Global (CGB) has revealed it will be undertaking a share placement to raise $3.75 million.

The company entered a trading halt on Monday but did not reveal how much it would be raising or what it would be using the money for.

All up, 750 million fully-paid ordinary shares will be issued to professional and sophisticated investors at 0.5 cents each.

Participants will also receive options, exercisable at 1.2 cents with expiry on January 31, 2022.

These options will be issued in two phases with phase one set to issue 125 million options at the same time as the placement.

Phase two, which is subject to shareholder approval, will issue 187.5 million options.

Also subject to shareholder approval will be the issue of a further 15 million options to the brokers of the placement.

Cann Global will use the money to clear its liabilities – which includes outstanding convertible notes of $3 million – with the remaining to be used for general working capital.

"The company is now in a very advantageous position with a strong debt free balance sheet, which gives a solid foundation for the company to focus on growth and expansion as we move into 2021," Managing Director Sholom Feldman commented.

"In addition, repayment of these convertible note liabilities represents the elimination of a significant future refinancing risk," he said.

"The additional capital raised will add further to the company's strong balance sheet position to fund initiatives that drive revenue growth, which we believe will translate into a sustained increase in shareholder value," he added.

Cann Global is up a strong 83.3 per cent and shares are trading at 1.1 cents at 1:25 pm AEDT.

CGB by the numbers
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