CANN Group chief executive officer Peter Koetsier has tendered his resignation as the medicinal cannabis production company forges ahead with plans to reduce its debts.
After serving 14 months in the role, Mr Koetsier cited family reasons for standing down, and will work through a handover period to finish up at the end of the financial year.
Two sales, previously flagged in the company’s half yearly report, which detailed a $64.1 million debt at the end of 2023, were secured this week.
Surplus equipment from its Mildura facility has been sold to commercial grower Biortica Agrimed Ltd, who are scheduled to pay two deposits totalling $200,000 by April 19, with the balance of $1.5 million to be paid on or before June 30.
Cann will receive a total of $1.9 million for the Mildura items if the payment is a combination of equity and cash, and $1.7 million if it is a cash-only payment.
The Group had collected its final payment of $1.9 million from a sale of business assets from its formerly owned southern facility to SatiVite Pty Ltd.
In January, the company had deferred its quarterly payments for a principal loan of $49.4 million for 12 months, from May 2024 to May 2025.
Cann announced that another extension has been signed off in its debt facility agreement with National Australia Bank this week.
Its working capital loan, which amounts to a fully drawn down figure of $15.6 million, has been extended from November 30, 2024 to March 31, 2025.
Yields and revenue had risen at the Mildura facility during Mr Koetsier’s tenure, and the Mildura facility is set to produce its first full operational capacity yield of 12.5 tonnes this calendar year.
The company had previously targeted operational profitability by the 2025 financial year.
In light of Mr Koestier’s decision, Non-executive Director Jenni Pilcher will assume an Executive Director role at the company, while the Board sets a new strategic direction.
Cann Group Chairman Julian Chick wished Koetiser well in his next endeavour.
“We are grateful for Peter’s efforts over the past 14 months in scaling up out business, which led to production of over 12 tonnes of product per annum, and increased sales,” Dr Chick said.
Mr Koetsier told the ASX that he was deeply grateful to the board, employees and stakeholder of Cann for their support and collaboration.
“I am truly grateful for the opportunity to have worked alongside such talented and dedicated individuals,” Mr Koetsier said.
