Cann Group Limited (CAN), a company focused on enhancing patients’ lives by developing, producing, and supplying innovative cannabis medicines, has announced a major restructure of its debt facilities and a capital raise. The announcement, released on Monday, outlines a debt reduction of 81% and a $60 million increase in net assets. The company has research facilities and corporate headquarters in Melbourne and operates a state-of-the-art large-scale cultivation and GMP manufacturing facility near Mildura, Victoria.
The major financier, National Australia Bank (NAB), has agreed to debt forgiveness of $54.7 million, settling approximately $70.0 million of outstanding loan balances (including capitalised interest) for a payment of $15.3 million. Additionally, a second lender will contribute a further $9.0 million loan and extend the maturity date of an existing $5.5 million loan, resulting in a total loan of $14.5 million maturing in two years.
Cann Group has secured firm commitments for a $9.0 million capital raising, consisting of a $6.5 million institutional placement and a $2.5 million Share Purchase Plan (SPP) with firm shortfall commitments. Participants in the placement and SPP will receive attaching options, potentially yielding up to $31.3 million upon exercise. The company also provided FY26 guidance, forecasting revenue of approximately $17.0 million, a 50% increase on FY25, and an EBITDA of $0.3 million to $0.7 million, a significant improvement from the FY25 EBITDA loss of $5.0 million.
Furthermore, Mr. Mike Ryan will join the Board as Chairman upon completion of the transaction, replacing interim Chair Mr. Doug Rathbone, who will revert to a non-executive Director role. The company anticipates strong demand for bulk flower and branded Botanitech™ products to drive future growth. The SPP opens on Thursday, 30 October 2025 and closes on Monday, 17 November 2025.
