Sign up Australia
Proactive Investors - Run By Investors For Investors

Cann Group to get a boost from Australia’s new medical cannabis export policy

Cann is planning to develop a 16,000 square metre medicinal canabbis facility.
Cann Group to get a boost from Australia’s new medical cannabis export policy
Cann recently commissioned its second production facility

Cann Group Ltd (ASX:CAN) is expected to benefit from the Australian Federal Government’s decision to permit Australian producers of medicinal cannabis to export products to overseas markets.

The company’s shares are trading circa 15% higher intra-day, at $3.32.

The federal government has approved the exportation of medicinal cannabis in a bid to strengthen the supply amid growing demand domestically and worldwide.

Importantly, the decision to allow exports is expected to lead to further investment in the Australian industry and provide local companies with an incentive to accelerate their development plans.

Cann recently commissioned its second production facility, and is progressing plans to develop a 16,000 square metre cultivation, R&D and manufacturing facility as part of its phase III expansion.

The expanded capacity is aimed at serving the Australian market with a reliable supply of high quality, safe and innovative medicinal cannabis products.

Well funded for expansion plans

In December 2017, the company successfully completed a share placement to institutional, sophisticated and professional investors to raise $58.7 million at $2.50 per share.

Major shareholder Aurora Cannabis Inc (TSE:ACB) participated in the placement and committed to invest a total of up to circa $26 million to achieve a 22.9% shareholding.

Cann is now in a strong position to accelerate its plans to substantially expand cultivation capacity, to support additional clinical trial activity and to continue its product development.

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

Cann Group Ltd Timeline

Related Articles

immunotherapy graphic
September 13 2018
A clinical trial application for the potential cancer treatment is on track to be filed in the current quarter, and that will be followed by patient recruitment towards the end of the year
Callitas CEO James Thompson
July 21 2018
CannaStrips will generate near-term revenue, while the company’s blue-sky pharmaceutical assets and orphan drug are solid, long-term plays
Dog skeleton with cannabis plant leaf
July 17 2018
The company's lead drug candidate is a cannabis-derived canine pain medication.

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