This follows the grant of a cultivation licence for the crop in November by Chilean authorities.
Up to 435 plants are being planted at DayaCann’s 30-hectare facility south of Santiago.
The crop is expected to be harvested in the first half of 2018 and will provide a range of cannabis strains to be extracted.
Elaine Darby, managing director, said: “The harvest of our first crop in Chile in April this year saw AusCann yield over 400 kilograms of dried cannabis product.
“We have since selected the highest yielding strains from that crop and are now cultivating our second crop using these strains.
“From these strains, it is our intention to develop final dose form medicines for the treatment of chronic and neuropathic pain that will be supplied into the significant Latin American market.”
Strains will be processed into trial formulations
After extraction the cannabis strains will be processed into trial cannabinoid formulations.
The product can then progress to clinical trials and registration with the Chilean National Institute of Public Health.
After registration, Chilean legislation permits the export of medications.
AusCann and the DayaCann joint venture are focused on establishing a fully integrated supply chain in Latin America.
This will see the joint venture manage operations from cultivation through to the development and sale of final dose form medications.
Chile operations complement Australian partnership
The Chilean operations complement the Australian strategic partnership between AusCann and Tasmanian Alkaloids with fully integrated cultivation and manufacturing of final dose form medications.
The AusCann and Tasmanian Alkaloids partnership is the only group to hold all necessary licences to produce final dose form Australian cannabinoid medications.
AusCann is the only listed company that is integrated across the full spectrum of the Australian medicinal cannabis supply chain.
In the immediate term AusCann will source and supply cannabinoid medicines to Australian patients from its Canadian strategic partner Canopy Growth.
AusCann manufacturing is also well positioned to supply Australian patients and future export potential.
The company is well funded with cash of $13.7 million at the end of the September quarter of 2017 and a market cap of $88 million.
It is on track with licensing to commence Australian cultivation and manufacturing cannabinoid products in 2018.
Milestones for 2018
AusCann's key milestones for 2018:
- Importation of medications from Canopy Growth to meet immediate demand and initial revenue generation;
- Growth in prescriptions by authorised prescribers;
- Establishment of manufacturing capabilities in Chile;
- Commence commercial cultivation activities in Tasmania;
- Commence R&D genetics program for the development of high yielding cannabis strains; and
- First harvest and products manufactured at Tasmanian facility.