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One of the biggest names in Australia's medicinal cannabis industry has increased the size of a share purchase plan (SPP) by 62 per cent after an encouraging uptake from investors.
Following a successful $14.3 million placement including a close to 8 per cent participation from directors, Cann Group (ASX: CAN) was aiming to raise a slightly higher amount again at $15.9 million for the SPP.
But investors were more eager than expected, with application monies of $25.9 million received from 2,793 shareholders. In response the company has raised the SPP to that same amount.
This takes the recent capital raising to a total of $40.2 million. While the funds were initially slated for working capital, Cann Group CEO Peter Crock says the additional equity will strengthen Cann's position as it looks to secure external debt funding to proceed with the first stage of its Mildura expansion.
"We are extremely pleased with the confidence and support shown by our large retail shareholding base," says Crock.
"The funding secured via the capital raising places the company in a very strong financial position to continue with our growth and expansion plans over the next 12 months and beyond."
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