Cannabis cultivator Cann Group loses $3.6 million in cyber attack

Cannabis cultivator Cann Group loses $3.6 million in cyber attack

A "sophisticated" cyber fraud perpetuated against Cann Group (ASX: CAN) has seen the cannabis company lose $3.6 million.

In an ASX announcement posted today, Cann Group says it discovered the breach on 4 February and is currently still investigating the matter.

According to Cann, the company recently made payments of $3.6 million to an overseas contractor in relation to works being undertaken for its Mildura cannabis facility.

However, the payment was received by an unknown third party as a result of what Cann describes as a "sophisticated cyber fraud" perpetuated against the company and the contractor.

The cannabis grower is currently working with its bank to determine if any of the payments can be halted and if any of the funds involved are recoverable.

"The company has notified its insurance brokers to determine if a claim can be made to recover any of the losses involved," says Cann.

"Immediate action has also been taken to ensure the integrity of Cann's IT systems.

"The company is in a financial position to continue with its ongoing operations and projects, including the construction of its Mildura facility, irrespective of any funds being recovered."

The matter has been reported to police in Victoria, the Netherlands and Hong Kong, as well as the Office of Drug Control.

Shares in CAN are down 2.27 per cent to $0.64 per share at 11.39am AEDT.

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