Cannasouth Limited, New Zealand's first and largest listed medicinal cannabis company, plans to launch a 1 for 8 pro-rata renounceable rights issue to raise up to approximately $5.6 million. The company has recently received verification for its CBD oral solutions and dried cannabis flower products and has begun commercial sales of its own manufactured medicinal cannabis products in New Zealand.
Cannasouth expects to generate revenues of $6 to $10 million in FY2024, primarily from the New Zealand and Australian markets. The company aims to achieve positive cash flow by the end of 2024 or early 2025. Shareholder participation in the rights issue is crucial to meet revenue and cash flow targets.
The funds raised will be used for various purposes, including driving sales momentum, meeting market demands, and general working capital. The rights offer will be available to eligible shareholders in New Zealand and Australia. The key dates for the rights offer are subject to change at the discretion of Cannasouth.
Source: Business Desk