Cann Group (ASX:CAN) received firm commitments to raise AU$711,902 through a private placement of 41.9 million shares at AU$0.017 apiece, according to a Tuesday filing with the Australian bourse.

Participants will also receive one attaching placement option for every share subscribed with an exercise price of AU$0.03 per share and an expiry date of 24 months from issue, pending shareholder approval, the filing said.

The proceeds will be used to cover production costs of medicinal cannabis flower, oil and gummies supply, working capital, and offer costs, per the filing.

180 Markets was the lead manager for the placement.

Shares fell 22% in recent trade on Tuesday and earlier hit an all-time low.