It looks like Cann Group (ASX:CAN) will be left with a $3.6 million loss in the wake of a devastating cybersecurity incident a fortnight ago, unless police can crack the case.

The cannabis company announced on February 8 that a “complex and sophisticated cyber fraud” caused it to send millions meant for an overseas contractor was misdirected to an unknown third party.

While Cann Group had initially hoped that the transaction might be able to be reversed or covered by insurance, the company disclosed in an update this morning that that wouldn’t be the case.

“Cann has confirmed that it does not have specific insurance coverage for the incident and that no funds have been recovered through the company’s bank,” Cann Group said.

But the Victoria Police E-Crime Squad is pursuing investigations both domestically and overseas, Cann Group said.

Cann Group has also hired Deloitte to make sure its systems are secure.

Cann Group also announced first-half loss of $9.4 million, up 12.2 per cent from a year ago. Revenue grew 35.5 per cent to $1.1 million.

As of December 31, the company had $27.7 million in cash at bank, up from $8 million a year ago, thanks to a $40.2 million capital raising to help fund its huge cannabis greenhouse in Mildura, Victoria.

Construction re-started this month and phase 1A of the project should be finished by the end of the year.