CBD Closes Rights Issue, progresses Convertible Note Offer

Cannasouth Limited (NZX:CBD) advises that it has closed its Renounceable Rights Issue offer to Cannasouth shareholders (Rights Offer).

The Rights Offer closed on 7 December 2023 with approximately 9,929,600 new shares taken up or subscribed for by eligible investors in total raising approximately $1,390,154.

Approximately 3,887,040 new shares were taken up by eligible shareholders raising approximately $544,185. Applications were also received from eligible investors for a further $845,969 in oversubscriptions above those eligible shareholders respective entitlements under the Rights Offer.

Cannasouth Chair, Tony Ho, said “On behalf of the Board and the Cannasouth team, I thank our loyal shareholders for your ongoing support of Cannasouth.”


Allotment of New Shares

Settlement, allotment and trading in the new shares under the Rights Offer is expected to occur on or before Friday 15 December 2023 under the existing ticker “CBD”.


Convertible Note Offer

Cannasouth launched a wholesale offer of secured convertible notes (Notes) to raise up to $5 million on 2 November 2023. $1 million of Notes were issued to three CBD directors.

The Company has been having discussions with other wholesale and eligible investors about participating in the Notes offer and expects to issue further Notes before year end and/or in the New Year.

Wholesale and eligible investors wanting to participate in the Note offer should contact the Company.

Funds raised by both the Offer and Notes are intended to provide working capital for the Company until such time as revenue is generated from several of the Company’s products, recently verified by the Medicinal Cannabis Agency (See NZX announcements of 27th and 31st October 2023).

CEO Mark Lucas says, “Our new products were verified by the Agency late October, and we are extremely pleased with initial sales in November following our product launch. We are expecting to see exponential growth to meet the demand for medicinal cannabis products in New Zealand and Australia.”


-ENDS-

For further information visit www.cannasouth.co.nz or contact:

Mark Lucas
CEO / Executive Director
Email: [email protected]
Mobile: 021 484 649

Tony Ho
Chairman, Cannasouth Limited
Email: [email protected]
Mobile: +61 (0)417 345 839

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Announcement PDF