Listed medicinal cannabis company Cannasouth has gone into voluntary administration after failing to raise much-needed money from investors. Earlier this week, share trading in the company was halted following a dispute with some investors, with the company warning it needed the money to remain solvent.
In a market announcement late on Thursday, Cannasouth revealed administrators had been appointed. The company said it came 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".
Ben Francis and Garry Whimp of Blacklock Rose had been appointed joint administrators, and now had responsibility for planning for ongoing operations and "meeting cashflow positive results".
"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," Cannasouth said.
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