Cannasouth plans cost cuts, faces regulatory delays

Cannasouth Ltd has identified opportunities for cost rationalization and operational efficiencies following its merger with Eqalis.

The company aims to reduce cash spend by approximately $400,000 per month through restructuring.

However, delays in product verification by the Medicinal Cannabis Agency (MCA) have affected the timeline for revenue generation.

Cannasouth is working with the MCA to expedite the verification process.

The company plans to dual list on the Australian Securities Exchange (ASX) but this is now expected to be further progressed in 2024.

Due to the delays, the company is considering capital raising options to support its cash position in the short term.

Despite the challenges, Cannasouth remains confident in its strategy to meet the demand for medicinal cannabis products in New Zealand and Australia.