Cann Group Limited (ASX: CAN) (“Cann Group” or “the Company”) has successfully completed a Placement of fully paid ordinary shares in the Company (“New Shares”) at $2.50 each (“Placement Price”) to institutional, sophisticated and professional investors which has raised $58.7 million. The Placement was expanded to $58.7 million, from $48 million (an additional $10.7 million), following very strong demand from new and existing shareholders, that were both domestic and international. Given the high institutional demand, Cann Group Directors will seek approval from Shareholders to subscribe to New Shares worth a total of $1.3 million (from $2 million), bringing the total Placement size to $60 million. The Shareholder meeting to approve this issue of shares will be held on or about Wednesday 17 January 2018.
Major shareholder Aurora Cannabis Inc (“Aurora”) participated in the Placement and has committed to invest a total of up to ~$26.0 million to achieve a 22.9% shareholding (up from 19.9%) at the completion of the capital raising. Aurora’s commitment will be satisfied through the Placement and placement of shortfall securities in the SPP (to the extent there is a shortfall). In the event there is not sufficient shortfall under the SPP to bring Aurora’s shareholding to 22.9%, the Company will place up to ~$8.0 million to Aurora to achieve a 22.9% shareholding.
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