Sharechat Logo

Restructure of Cannasouth Cultivation Limited (NZX:CBD)

Friday 1st October 2021

Text too small?

Cannasouth Limited (NZX: CBD , Cannasouth or Company) announces that its recent capital raising has closed having raised a total of $4.7 million through the issue of 11,750,000 new fully paid ordinary shares and 3,917,149 options. For every three shares subscribed for in this offer, an investor received one option. The unquoted 2-year expiry options have an exercise price of $0.40 per share.

On 5 July 2021, Cannasouth announced it was seeking to raise up to $6 million to consolidate its operations by acquiring outstanding interests it does not already own, in each of Midwest Pharmaceutics NZ Limited (Midwest) and Cannasouth Cultivation Limited (CCL), and to provide additional growth capital.

Acquisition of the outstanding 40% shareholding in Midwest by Cannasouth was completed on 31 July 2021.

Acquisition of the outstanding 50% shareholding in CCL was conditional on Cannasouth raising not less than $6,000,000 by 30 September 2021. Given $4.7 million was raised in the capital raising initiative, the condition in that agreement was not satisfied and the Deed of Sale and Purchase of the outstanding interest in CCL has been terminated.

Cannasouth Chairman Tony Ho says “We are pleased with the positive support we have received from shareholders and investors, given the current environment, to have successfully raised $4.7 million of our targeted $6 million raise. We propose to commence further discussions with our JV partner, Mr Aaron Craig, to review available options for the proposed acquisition of the outstanding 50% of Cannasouth Cultivation Limited to be achieved.”

Restructure of Cannasouth Cultivation Limited



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report