Just to re-enforce the importance of the auditors report in...

Just to re-enforce the importance of the auditors report in financial statements. It is the go to section in those financial reports and can tell a lot about the financial health of the company.

The "going concern" provision can affect disallowed listed status for any company if thy cannot give evidence on future funding.

In BIT's case, the directors did give evidence that future funding covered the next 12 months and, therefore, it was not an issue.

Medicinal cannabis company Cann Group's shares suspended after auditorreveals funding concerns

• In short: Cann Group has been suspended from trading on the ASX after an auditor found "insufficient evidence" of future funding.
• Cann Group employs about 40 staff in Mildura, Victoria.
• What's next? Cann Group said in a financial report that it was in discussions with "various parties" to secure funding or refinancing to continue operating.

The Australian Securities Exchange has suspended the shares of one ofAustralia's largest medicinal cannabis producers after an auditor reported"insufficient evidence" of future funding.

Cann Group was the first company to be issued with a cannabis researchlicence by the Australian government's Office of Drug Control in 2017.

It has invested $49 million in a medicinal cannabis glasshouse on theoutskirts of Mildura and employs about 40 staff.

On Friday, the company was suspended from trading after a report byauditor William Buck said the company and its directors had been "unableto provide sufficient appropriate evidence" of enough funding for thecompany to operate over the next 12 months.

"As at the date of this report, the group has been unable toconfirm its ability to secure an appropriate mix of current and longer-termexternal financial commitments to provide sufficient funding to support thegroup as a going concern," the auditor wrote.

In its half-year financial report filed to the ASX on Thursday, CannGroup reported an operating loss of $14.34 million in the half-year to December31 and noted debts worth about $64 million.

Cann Group was "in ongoing discussions with various partiesregarding funding/refinancing options", the financial report said.

As of December 31, Cann Group had cash on hand of $1.64 million andaccess to $800,000 in a working capital facility.

It also had unused assets at its Mildura site that could be sold for anestimated $1.7 million, the report said.