Cannabis play Queensland Bauxite has repriced a capital raising announced last month and changed its cash-raising expectations.

Last month the miner-turned-pot-purveyor announced it would buy out the remainder of its Medical Cannabis subsidiary as well as Medcan Australia which holds a crucial medical cannabis production licence.

The shares rocketed 30 per cent to 5.3c after the June 21 announcement — which also included details of a $5 million capital raising priced at 8c per share.

Since then, however, the stock has fallen back to around 3.7c.

On Wednesday, the Pnina Feldman-chaired group told investors that “due to current market conditions, the intended capital raise at 8c is no longer an immediate practical option”.

Instead, the offer will now be priced at 3.5c and aim for $2 million with an over-subscription allowance for a maximum of $6 million.

For every two shares bought, QBL is including an 18-month option at an exercise price of 10c.

QBL also extended the Medcan acquisition date from August to October.

Queensland Bauxite shares (ASX:QBL) over the past year
Queensland Bauxite shares (ASX:QBL) over the past year

“Due to the current market conditions, the board has had no option but to change the raising price,” the group said.

The discounted raising would be offered to QBL shareholders “in accordance with the size of their shareholding and the length of time the shareholder has held their shares”.

QBL banked $96,000 in customer receipts last year and burned $2.5 million in operating costs.

It had $6.4 million left in the kitty at the end of June and planned $1.2 million in spending this quarter.