CANNABIS COMPANY SECURES PERMITS FOR NEW PLANTS TO BEGIN CULTIVATION
Written on the 30 May 2017 by Ben Hall
MEDICAL Cannabis company Cann Group Limited (ASX: CAN) will receive its first plant material and start cultivation of medicinal cannabis in the next few days after obtaining official permits.
The Melbourne-based company has been issued with one medicinal cannabis permit and two cannabis research permits which will enable it to grow breeding plants to be used for medicinal cannabis products.
The first plants are expected to be harvested by August 2017.
Cann was the first Australian medicinal cannabis company to be issued with cultivation licences for both medicinal supply and research purposes under the Federal Government's regulatory system.
"We now have the necessary funding to complete our expansion program and continue with evaluation of strains for production and our breeding program and other development activities," says Cann CEO Peter Crock.
"Securing these permits is another significant milestone in the execution of our business plan," he says.
The company has confirmed it was on track to build a second facility in Melbourne which will be used for research and development as well as for cultivation of crops.
Earlier this month, Cann Group made its debut on the ASX after it successfully raised $13.5 million in a fully underwritten IPO which gave it an initial market capitalisation of $31.5 million.
The company has secured Aurora Cannabis, Canada's second largest listed cannabis company as a cornerstone investor with 20 per cent of CAN shares.
Medicinal cannabis is used to treat severe pain, nausea and vomiting and can ease muscle spasticity and provides relief for patients suffering cancer, epilepsy, HIV and MS.
Cann Group is the newest among a group of eight major players on the ASX who are also succeeding in the medicinal cannabis space.
CAN shares listed in early May at $0.30 and are now trading at $0.56.
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Author: Ben Hall