Publicly listed medical cannabis company, The Cann Group, has lost a major investor after Aurora Cannabis sells its 11% stake in the company.
The Cann Group Limited (ASX: CAN) was the first Australian company to receive it’s licensing and permit for the cultivation of medical cannabis in 2017. That year, Canadian-investor Aurora Cannabis first begun to invest in The Cann Group.
Aurora continued to invest over the next three years, sinking a total of AUD $32.4 million into group. On Friday, Aurora’s entire 11.84% stake was sold off market to a small handful of buyers.
Based on the closing share price of $0.42, Aurora has estimated to have made $13.4 million from the sale.
While Aurora has not issued a public statement explaining why their investment was dropped, the Cann Group’s 2019/2020 financial year results were released in August. The results show that the Cann Group’s revenue dropped 56% from the previous financial year, making just $1.86 million.
Despite this, the company has reassured investors Aurora’s withdrawal will not impact the growth of the company. The following was stated in a press release:
Aurora’s decision has no impact on Cann Group’s business plans, which remain focused on developing a growing and diversified supply base with B2B customers in Australia and overseas.
Among other large-scale projects, The Cann Group is currently building a $184 million cannabis production facility in Mildura. The company was granted a $1.975 million government grant for the facility in July.