Cann Group Ltd Moves to End Convertible Debt With 5% Premium Waiver
Cann Group Limited (ASX: CAN) has agreed with Obsidian Global GP, LLC (“Obsidian”) to redeem, in full, all remaining convertible notes and bring its convertible securities facility to an end. The move clears the remaining convertible debt under this facility.
The redemption relates back to the facility established and announced on 16 March 2026. Under the agreement, Cann will redeem all 350,000 convertible notes remaining on issue at 100% of their aggregate face value of US$402,500.
A redemption notice has already been issued to Obsidian on the agreed terms.
Redemption terms at a glance
A key feature of the agreement is that Obsidian agreed to waive the additional 5% premium that would otherwise apply on an early redemption. This negotiated concession reduces the cost to Cann of closing out the facility early.
After set-off of amounts payable by Obsidian to the Company in respect of placement shares, the net amount payable by Cann to Obsidian is US$363,704.
| Item | Detail |
|---|---|
| Notes redeemed | 350,000 |
| Aggregate face value | US$402,500 |
| Early redemption premium | Waived (5%) |
| Net amount payable to Obsidian | US$363,704 |
| Outcome | Notes cancelled, facility ends on payment |
Next steps confirmed in the announcement:
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Redemption notice issued to Obsidian on the agreed terms
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On payment, all convertible notes will be cancelled
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The convertible securities facility will end
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What convertible notes are and why this matters
A convertible note is a form of debt that can convert into shares at a later date. If converted, those new shares increase the total number on issue, which can dilute the holdings of existing shareholders.
Redeeming the notes early removes that conversion overhang, along with the associated repayment obligation attached to the facility. Having the lender waive the 5% early redemption premium is generally viewed favourably, as it lowers the cost of retiring the debt ahead of schedule.
Strengthening the capital structure
The convertible securities facility will end upon payment under the redemption notice, with Obsidian agreeing to waive the additional 5% premium that would otherwise apply.
The announcement does not disclose the Company’s cash balance, funding runway, or any future capital plans. No commentary on those matters is provided in the source.
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About Cann Group
Cann Group develops, produces and supplies medicinal cannabis products from a large-scale cultivation and GMP manufacturing facility, with integrated research capability, near Mildura, Victoria.
Through its Botanitech and Mallee Bloom brands, together with bulk and white label supply, the Company provides a range of dried flower, oil, vape and edible medicinal cannabis products to customers in Australia and around the world.
Upon payment under the redemption notice, all convertible notes will be cancelled and the convertible securities facility will end.
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