Cann Group Targets 50% Revenue Growth with $6.5M Capital Raise
Cann Group Limited has opened a $6.5 million Share Purchase Plan (SPP) alongside a placement, offering shareholders discounted shares with attaching options as it targets significant revenue growth in FY26.
- Share Purchase Plan open to eligible shareholders with $30,000 cap
- Placement to sophisticated investors raising $6.5 million before costs
- Shares issued with attaching options subject to shareholder approval
- Funds earmarked for National Australia Bank debt repayment
- FY26 guidance forecasts 50% revenue growth and improved EBITDA
Capital Raising Initiative
Cann Group Limited has announced the opening of a Share Purchase Plan (SPP) aimed at raising approximately $6.5 million before costs. The offer allows eligible shareholders in Australia and New Zealand to purchase up to $30,000 worth of new fully paid ordinary shares at a 2.5% discount to the five-day volume weighted average price (VWAP) leading up to the offer’s close on November 17, 2025. This initiative follows a placement to sophisticated and institutional investors conducted in two tranches, with the second tranche subject to shareholder approval at the upcoming Annual General Meeting (AGM).
Attaching Options and Shareholder Approvals
In addition to the new shares, participants in both the SPP and placement will receive attaching options exercisable at 1.15 cents expiring in June 2026, as well as piggyback options exercisable at 2.85 cents expiring in June 2028. These options are designed to provide additional value to investors but require approval at an Extraordinary General Meeting (EGM) anticipated in December 2025. The company’s directors retain discretion over any shortfall placements and pricing, ensuring flexibility in managing the capital raise.
Use of Funds and Financial Outlook
The funds raised through the SPP and placement will primarily be used to repay debt facilities with National Australia Bank, strengthening Cann Group’s balance sheet. The company also provided FY26 guidance, forecasting revenue growth of approximately 50% to $17 million, driven by strong demand for its branded products including Botanitech™. EBITDA is expected to improve from a loss of $5 million in FY25 to a positive $0.7 million in FY26, signaling a potential turnaround in operational performance.
Key Dates and Investor Access
The SPP record date was October 24, 2025, with the offer officially announced on October 27. Eligible shareholders received access to the offer booklet and personalised application forms electronically, reflecting a modern approach to shareholder engagement. The AGM is scheduled for November 28, 2025, where shareholders will vote on the placement tranche, while the EGM for option approvals is expected around December 23, 2025.
Strategic Positioning
Cann Group operates in the cannabis pharmaceuticals sector, with production facilities in Victoria and a portfolio that includes Satipharm’s patented capsule technology. This capital raising effort and optimistic guidance underscore the company’s commitment to scaling its operations and improving financial health amid a competitive and evolving market landscape.
Bottom Line?
Cann Group’s capital raise and optimistic FY26 outlook set the stage for a pivotal year, but shareholder approvals and market reception will be critical next steps.
Questions in the middle?
- Will shareholder approval be secured smoothly for the attaching options and placement tranche?
- How will the market respond to the dilution and option issuance amid the capital raise?
- Can Cann Group sustain its projected revenue growth and transition to EBITDA profitability in FY26?
