Cannasouth aims to raise $5.6m through rights issue

Cannasouth Limited has announced the launch of a rights issue to raise up to approximately $5.6 million.

Eligible shareholders will receive personalized letters of entitlement with links to the offer document and acceptance form.

Ineligible shareholders will also receive a letter.

The funds raised will be used for various purposes including driving sales, meeting market demands, and general working capital.

The company expects to achieve revenues of $6 to $10 million in FY2024 and aims to be cashflow positive by the end of 2024 or early 2025.

The rights offer is crucial for the company to achieve its revenue and cashflow targets.