Sign up Australia
Proactive Investors - Run By Investors For Investors

AusCann Group Holdings to harvest first medical cannabis crop

The harvest of our first crop in Chile represents a key milestone for AusCann
AusCann Group Holdings to harvest first medical cannabis crop
The company’s growing facility in Chile

AusCann Group Holdings (ASX:AC8) is on track to harvest its first medicinal cannabis crop in Chile in April 2017.

The crop consists of 400 plants across eight strains that are being grown at a 30-hectare facility south of Chile’s capital city, Santiago.

This product is intended to supply third parties for use in clinical trials and depending on results lead to registered product with the Chilean National Institute of Public Health, and subsequent commercial sales.

Elaine Darby, managing director, commented: “The harvest of our first crop in Chile represents a key milestone for AusCann.

“Through our partnership with Fundacion Daya we are excited about the opportunities that lay ahead for both the Chilean and international market.”


Fundacion Daya joint venture

AusCann and Fundacion Daya have formed a 50:50 joint-venture company, DayaCann, which will focus on becoming South America's leading medical cannabis group.

The crop was planted in Chile with the joint venture partner in November 2016 and has been progressing well with the plants now nearing maturity.

Chile provides a framework supporting the entire production chain from cultivation, processing, formulation, trials, research and registration.

This provides a cost-efficient model allowing access to high quality, affordable medicines for those patients in need.

Under current regulations, Chile allows the export of products, once registered as medicines locally, together with exporting extracts as raw material for the international pharmaceutical industry.


Early mover advantage

AusCann has an early mover advantage and a demonstrable position in the global supply chain.

The regulatory landscape for medical cannabis globally is still evolving, both domestically and internationally and the expertise and background of the AusCann board and its partners means it has a clear advantage in navigating this opportunity.

AusCann is well positioned to take advantage of the developing market by bringing together a strong team with relevant and complementary skill sets.

The team includes the largest legal producer of medicinal cannabis in North America, Canopy Growth Corp and Chilean medicinal cannabis grower Fundación Daya.

AusCann has joined the Canopy family of companies and partners that includes Tweed (the most recognised cannabis production brand in the world), Bedrocan, DNA Genetics, Cann Science, Indoor Harvest and Mettrum Health Corp (following its recently announced CAD$430 million acquisition by Canopy).


Background

Medical cannabis company, AusCann, commenced trading on the ASX earlier this month after completing a successful reverse takeover of TW Holdings.

The company raised the maximum $5 million under its prospectus offering by issuing 25 million shares priced at $0.20.

AusCann’s research activities will drive the company’s future earnings.

Results and knowledge gained from AusCann’s research activities are to continuously feed into current and potential commercial activities to optimise revenue and profit from these commercial activities.

Prior to AusCann being able to cultivate and manufacture Australian, it intends to import product suitable for chronic neuropathic pain, chronic pain and treatment resistance epilepsy from its Canadian partner Canopy to meet demand.

Given the maximum of $5 million was raised in the prospectus offering, this provides Auscann with total cash of $8.3 million.

Funds are to be allocated as follows:

- Horticulture research and development: $1.8 million
- Chilean joint venture: $1.35 million
- Analytical testing: $0.33 million
- Clinical trials: $2.77 million
- Medical education: $0.33 million
- Licence applications and fees: $0.21 million
- Termination fee: $0.2 million
- Working capital and offer costs: $1.3 million

Join our Crypto, Blockchain and Cannabis Telegram group here
View full AC8 profile View Profile

AusCann Group Holdings Ltd Timeline

Related Articles

scientist in lab
August 31 2018
While the data bodes well for MTD201, Midatech is most excited by the validation of its Q-Sphera sustained release technology, which it is using in some of its other compounds
woman at a microscope
August 02 2018
Currently undergoing phase III clinical trials, AP101 is being developed to treat Epidermolysis Bullosa, a condition which occurs prominently in children and makes skin fragile to even the faintest touch
Vial of pills
June 25 2018
Cosmos is a modern company, but the trade routes it relies on are ancient

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use