Appointment of Voluntary Administrators

Cannasouth Limited (NZX:CBD) announces that after careful consideration of the circumstances of the Company, including the challenges of securing additional funding and balancing the interest of shareholders and convertible note holders, the directors’ have made the decision to place the Company into voluntary administration. The appointment has been undertaken in consultation with the note holders who at the invitation of the board nominated the administrators.

The responsibility for preparing a plan for the ongoing operations of the Company with the objective of meeting cashflow positive results, has now passed to Ben Francis and Garry Whimp from Blacklock Rose Limited as joint administrators of the Company.

The administrators will be undertaking a detailed review of the operations of Cannasouth with particular focus on identifying the profitable lines of the company’s products and services. When that has been completed the administrators will be seeking financial support from shareholders and note holders to implement that plan. It is expected that the review being undertaken by the voluntary administrators will take some time to complete as the parent company and its principle trading subsidiary companies are scrutinised.

In the meantime, Cannasouth continues to support its customers with quality products that meet the strict regulatory requirements that apply to the production and supply of medicinal cannabis.

-ENDS-


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

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

Ben Francis
Administrator, Blacklock Rose Ltd
Email: [email protected]
Mobile: 021 042 6991

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Announcement PDF