Total
0
Shares
Cann Group (ASX:CAN) - CEO, Peter Crock - The Market Herald
CEO, Peter Crock
Source: Cannabis Club Australia
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Cann Group (CAN) has secured a $50 million loan from National Australia Bank (NAB) to fund the first stage expansion of its Mildura Facility
  • The company is currently expanding its facility to increase its dried cannabis flower production
  • Site construction is expected to commence in February 2021, with the first product to be processed and released by March the following year
  • Once completed, the first stage will provide Cann with the capacity to produce 12,500 kilograms of the dried flower every year
  • On the market this morning, Cann is up 12.9 per cent and is trading for 35 cents per share

Cann Group (CAN) has secured a $50 million loan from National Australia Bank (NAB).

The funds will be used to complete the first stage of Cann's medicinal cannabis production site near Mildura.

The company is currently expanding its facility to expand the production of dried cannabis flowers every year, using controlled environment greenhouse technology.

Cann said the new loan will clear a pathway to commence construction at the Mildura site, with work expected to begin in February next year. The first stage will take around nine months to build, with the first product to be processed and released by March 2022.

Once completed, Mildura's first stage will allow Cann to produce around 12,500 kilograms of the dry flower every year.

All up, the first stage is expected to cost $112 million, but Cann has already spent around $53 million to fund on-site works and the facility superstructure. In July, the company received nearly $2 million under the Victorian Government's regional jobs fund, which will contribute to the project.

CEO Peter Crock said increasing production at Mildura is an important step in Cann's plan to produce medicinal cannabis at scale.

"The facility will utilise world-leading technology, providing Cann with a globally competitive unit price based on substantial economies of scale," he said.

"Securing the support of a tier one bank is a strong validation of our strategic growth plans. Given the building demand for our products, we have the confidence to immediately ramp up production as soon as the facility is ready," he added.

Final documents for the loan are scheduled for completion within the next month.

On the market this morning, Cann is up 12.9 per cent and is trading for 35 cents per share at 12:05 pm AEDT.

CAN by the numbers
More From The Market Herald
Creso Pharma (ASX:CPH) - Creso Pharma - The Market Herald

" Creso Pharma (ASX:CPH) launches ecommerce channels, enters Polish markets

Creso Pharma (CPH) has launched new e-commerce channels and expanded into Poland with a maiden purchase order secured.
Emyria (ASX:EMD) contracts consultant for psychedelics and MDMA research

" Emyria (ASX:EMD) contracts consultant for psychedelics and MDMA research

Emyria (EMD) has appointed a consultant to support its psychedelic-assisted therapy programs.
AnteoTech (ASX:ADO) - CEO, Derek Thomson - The Market Herald

" AnteoTech (ASX:ADO) ticks off another distribution deal for EuGeni

AnteoTech (ADO) has signed a distribution agreement with Ramma Dental for its EuGeni Reader platform and SARS-CoV-2 Antigen Rapid Diagnostic Test (RDT).
Healthia (ASX:HLA) - CEO, Wesley Coote - The Market Herald

" Healthia (ASX:HLA) up on Rothwell Physiotherapy buy

Healthia (HLA) shares have enjoyed a 10 per cent rise after reporting a $1.62 million acquisition of Queensland’s Rothwell Physiotherapy.