Cannasouth Limited — Trading Halt of Securities

Memorandum

To: Market Participants
From: NZX Product Operations
Date: Tuesday, 26 March 2024
Subject: Cannasouth Limited — Trading Halt of Securities

Message:

NZ RegCo advises that, at the request of the issuer, it has placed a trading halt on Cannasouth Limited (“CBD”) ordinary shares at pre-market open today.

CBD has sought the trading halt as it is in dispute with some of its secured convertible note holders, which has the potential to prejudice an urgent additional capital raise CBD is seeking to finalise and announce to market. CBD has an urgent need to secure funding to remain solvent.

CBD seeks a halt to enable discussions with the secured convertible note holders and some of its shareholders to try to resolve the dispute and obtain certainty of funding. CBD cannot be sure that all investors and the market will have equal information while it completes discussion prior to making a market announcement about a capital raise, and is concerned that there could be a disorderly market for its ordinary shares.

The trading halt will remain in place until the earlier of:
1. an announcement from CBD in relation to the discussions and capital raising; or
2. market open on Thursday, 28 March 2024.

Please contact NZX Product Operations on +64 4 496 2853 or [email protected] with any queries.

ENDS

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Announcement PDF