Launch of capital raising initiatives in support of merger

On 28 April 2023, Cannasouth Limited (NZX:CBD) shareholders overwhelmingly approved the proposed merger of CBD with Eqalis Group New Zealand Limited (Eqalis).

To complete the merger, CBD is seeking to raise $9 million of new capital through a 1 for 9.53075 pro-rata non-renounceable rights issue to Cannasouth shareholders, and a 1 for 2.7126 non-renounceable offer to Eqalis shareholders, with up to $2 million of oversubscriptions offered.

The Merger is conditional upon CBD raising not less than $7 million of new capital on or before 9 June 2023.

The opening date for the offers is 10 May 2023.