A MILDURA medicinal cannabis production facility will be expanded, after Cann Group successfully raised $8.18 million through shareholders.
Cann Group Limited confirmed on Monday a share purchase plan offer to 1254 shareholders had raised the funds to contribute to the company’s investment in expanding its Mildura manufacturing capabilities.
The company said this was in preparation for scaling up production, which was needed to respond to the expected significant demand for Satipharm products, including over-the-counter cannabidiol products once they become available as registered S3 medicines.
Funds raised will contribute to commercial scale encapsulation and packaging, the development of THC-containing Satipharm products, and increasing capacity and efficiency for GMP dried flower packing.
The money will also be used to assist with working capital over the medium term, while the company pursued both manufacturing scale and preparation and submission of a registration dossier for the Satipharm S3 capsule product.
Cann Group chief executive Peter Crock said the funds would allow the company to execute on important commercial projects and accelerate the path towards a positive cash flow position.
“We are encouraged by the strong support of our shareholders and are looking forward to an exciting year ahead,” he said.
