Why the Cann (ASX:CAN) share price is crashing 10% lower today

The Cann Group Ltd (ASX:CAN) share price has come under pressure after the cannabis company was hit by a cybersecurity incident…

| More on:
Man on laptop with cybersecurity symbols

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Cann Group Ltd (ASX: CAN) share price has returned from its trading halt and is crashing lower.

At the time of writing, the cannabis company's shares are down 10% to 59.5 cents.

Why was the Cann share price in a trading halt?

On Friday Cann requested a trading halt pending the release of an announcement in relation to an investigation that the company is undertaking.

This morning Cann revealed that its investigation relates to a major cyber security incident which has cost the company dearly.

According to the release, the company has recently made payments of approximately $3.6 million to an overseas contractor. These payments were in relation to works being undertaken for Cann's Mildura facility.

However, it turns out that those payments have been received by an unknown third party as a result of a complex and sophisticated cyber fraud perpetrated against the company and its overseas contractor.

Cann is now working with its bank to determine if any of the payments can be halted and if any of the funds involved are recoverable. It has also notified its insurance brokers to determine if a claim can be made to recover any of the losses involved.

Furthermore, immediate action has been taken to ensure the integrity of Cann's IT systems.

What now?

Management advised that Cann is in a financial position to continue with its ongoing operations and projects irrespective of any funds being recovered. This includes the construction of its Mildura facility.

It is also investigating the incident thoroughly with its overseas contractor. This includes the engagement of external security and forensic IT experts to assist.

The matter has been reported to police in Victoria, the Netherlands, and Hong Kong, as well as the Office of Drug Control. Further updates will be provided in due course as the investigation proceeds.

Should you invest $1,000 in Pushpay right now?

Before you buy Pushpay shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Pushpay wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Fallers

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Block, Corporate Travel Management, Judo, and Zip shares are sinking today

These shares are missing out on the good times on Friday. But why?

Read more »

Man with a hand on his head looks at a red stock market chart showing a falling share price.
Share Fallers

These were the worst-performing ASX 200 shares in April

These shares were out of form last month. But why?

Read more »

Man waiting for his flight and looking at his phone.
Travel Shares

Corporate Travel shares crash 11% as Trump tariffs bite

Trump’s tariffs are roiling Corporate Travel shares on Friday.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Brainchip, DroneShield, Resolute Mining, and Woodside shares are falling today

These shares are under pressure on Thursday. What's going on?

Read more »

Man with a hand on his head looks at a red stock market chart showing a falling share price.
Share Fallers

Why Appen, Bank of Queensland, Novonix, and Ora Banda shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.
Share Fallers

Why Brainchip, Catalyst Metals, Northern Star, and Pact Group shares are tumbling today

These shares are having a tough time on Tuesday. But why?

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Share Fallers

Why Brambles, Bravura, Pantoro, and Telix shares are sinking today

These shares are starting the week in the red. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why DroneShield, Generation Development, Oneview, and PWR shares are falling today

These shares are ending the week in the red. But why?

Read more »