Merchant buys $12m AusCann stake

Perth-based Merchant Group is now the largest shareholder of medical cannabis company AusCann Group Holdings, after it acquired an 11.43 per cent stake worth around $11.6 million.

Canada-based Canopy Growth sold its 13.2 per cent interest in AusCann, which equates to around 42 million shares.

At AusCann’s previously closing price of 32 cents each, this equates to about $13.5 million.

The bulk of the stake was acquired by funds manager Merchant Group, which was the lead adviser to AusCann for a $12 million placement in 2017.

Canopy became a major shareholder in AusCann via the same capital raising in 2017.

AusCann said it still had a good working relationship with Canopy Growth, evidenced by Marcel Bonn-Miller’s recent appointment to the AusCann board.

Mr Bonn-Miller will remain on the AusCann board, the company said.