Cann Global Ltd (ASX:CGB) has entered a materially strategic memorandum of understanding (MOU) with Australian pharmaceutical company Biohealth Pharmaceuticals.
This strategic alliance will assist Cann to move its production schedule of medical cannabis formulations and nutraceutical hemp food consumables forward to 1H 2019, focusing on potentially lucrative short-term revenues.
BioHealth Pharmaceuticals is one of a few in an elite group of TGA (Therapeutic Goods Administration) and GMP (Good Manufacturing Practice) approved Australian pharmaceutical companies registered to produce and manufacture pharmaceuticals and complementary medicines in Australia.
@CGBCannGlobal Cann Global Limited received its ASX code (ASX:CGB)#ASX #Medical #medicalmarijuana #MedicalCannabis #painrelief #chronicpain #chronicillness #arthritis #hempoil #MultipleSclerosis #Hemp #painkillers #Epilepsy #Fibromyalgia #ParkinsonsDisease #cancer pic.twitter.com/kR9mStODM2— Cann Global Limited (@CGBCannGlobal) January 27, 2019
The MOU will assist Cann to produce high volumes of product to distribute into the Australian and Asian marketplaces, initially targeting the established markets of Hong Kong, Japan and Korea.
Further opportunities exist to leverage relationships with chemists, health food conglomerates and supermarket chains in the region.
Cann food division production and development manager Peter Edwards said: “Bio Health Pharmaceuticals are clearly a perfect fit with Cann Global.
“BioHealth pharmaceuticals is a genuinely dynamic company, innovative, Asian focused, well respected and have impeccable regulatory credentials.
“High quality pharmaceutical and nutraceutical manufacturing practices are available to Cann Global right now, rather than later.”
“In addition to now having the ability to immediately mass produce the Canntab and Pharmocann medical Cannabis products, together, we are about to produce high volume co-branded nutraceutical products under the Bio Health Pharmaceuticals and VitaHemp banners, initially targeting mature Hemp markets in Hong Kong, Japan & Korea.
“There are positive opportunities for both companies in existing markets, whilst exploring new, particularly large Asian chemist and health food conglomerates, including in the massive Chinese markets.”
@CGBCannGlobal Research into cannabis as a First Line Analgesic.#Medical #medicalmarijuana #MedicalCannabis #painrelief #chronicpain #chronicillness #arthritis #hempoil #MultipleSclerosis #painkillers #Epilepsy #Fibromyalgia #ParkinsonsDisease #cancerhttps://t.co/PTUJiL6XaJ pic.twitter.com/sE47quYBWC— Cann Global Limited (@CGBCannGlobal) January 27, 2019
BioHealth will manufacture Canntab medical cannabis formulations and proprietary medical products, the Pharmocann range of medical products, and the full range of hemp seed oil capsules and nutraceuticals at its facilities in Sydney on commercial terms as a contract manufacturer.
Importantly, the new arrangement is expected to return multi-million-dollar savings to Cann in manufacturing costs.
This is also expected to save Cann the potential additional delay of a year or two needed to secure the appropriate TGA and GMP licenses which would have otherwise been required for a new manufacturing facility.