Friday 1st October 2021
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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.”
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