Earlier today, Australian cannabis company, Cann Group Ltd. (ASX:CAN) (OTC:CNGGF) announced that they have secured the permits necessary to begin cultivation. Cann Group was the first Australian medical cannabis company to obtain cultivation permits from the Office of Drug Control.
Permits and Developments
Cann Group was issued three permits, one medicinal cannabis permit and two cannabis research permits. These permits enable the company to grow breeding plants for propagation purposes and to supply raw cannabis to be manufactured into medicinal products. These permits will also facilitate a research study with the Commonwealth Scientific and Industrial Research Organization (CSIRO) to develop unique cannabis extracts.
The first plants are expected to be harvested in August 2017 and the finished material will be supplied to a commercial processor to be manufactured for use in clinical trials or to be distributed to patients.
Until then, cannabis and cannabis derivatives will need to be imported for patients. Earlier this month, CanniMed Therapeutics became the first company to complete a commercial export of cannabis oil to Australia.
Despite this news, shares of Cann Group Ltd. came under pressure in today's trading on the ASX, falling 5.36% on light trading volume. Although shares are still up more than 43% from the IPO Price, compared to their open on May 4th (the first day of trading), shares of Cann Group are down more than 18%. Remember, Canadian Licensed Producer, Aurora Cannabis was the cornerstone investor in the Cann Group IPO and holds 19.9% of the company as of May 15th.
View the original ASX Announcement here.
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