ABC News: Medicinal cannabis company Cann Group’s shares suspended after auditor reveals funding concerns

Thanks god there’s a stop signal for this trainwreck

The Australian Broadcasting Corporation writes

The Australian Securities Exchange has suspended the shares of one of Australia’s largest medicinal cannabis producers after an auditor reported “insufficient evidence” of future funding.

Cann Group was the first company to be issued with a cannabis research licence by the Australian government’s Office of Drug Control in 2017.

It has invested $49 million in a medicinal cannabis glasshouse on the outskirts of Mildura and employs about 40 staff.

On Friday, the company was suspended from trading after a report by auditor William Buck said the company and its directors had been “unable to provide sufficient appropriate evidence” of enough funding for the company to operate over the next 12 months.

“As at the date of this report, the group has been unable to confirm its ability to secure an appropriate mix of current and longer-term external financial commitments to provide sufficient funding to support the group as a going concern,” the auditor wrote.

In its half-year financial report filed to the ASX on Thursday, Cann Group reported an operating loss of $14.34 million in the half-year to December 31 and noted debts worth about $64 million.

Cann Group was “in ongoing discussions with various parties regarding funding/refinancing options”, the financial report said.

As of December 31, Cann Group had cash on hand of $1.64 million and access to $800,000 in a working capital facility.

It also had unused assets at its Mildura site that could be sold for an estimated $1.7 million, the report said.

The ABC has contacted Cann Group for comment.

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