Cann Group Ltd (ASX:CAN) has secured approval from the Federal Department of Health's Office of Drug Control (ODC) for manufacturing licences for the Northern and Southern medicinal cannabis facilities in Melbourne.
The licences relate to the manufacturing, packaging, storage, transport and disposal of medicinal cannabis in final dose and intermediate forms.
Appropriate permits will be required to undertake specific activities under the licences.
Cann Group chief executive officer Peter Crock said: “Securing our ODC manufacturing licences is an important milestone that supports our fully integrated business model strategy.
“The ability to undertake these activities at both our Northern and Southern facilities give us considerable flexibility as we continue to progress the development of our new state-of-the-art cultivation facility near Mildura.”
Crock added the licences would complement the manufacturing arrangement in place with IDT Australia Ltd, which was granted its ODC manufacturing licence in May.
“IDT, which has GMP approved facilities, offers us immediate access to proven expertise in pharmaceutical manufacturing while we continue to develop our own capabilities.”
Shares have been up as much as 7% to an intra-day high of $2.35.
Large scale cultivation & production of medicinal cannabis
The company entered into a non-binding heads of agreement (HOA) to purchase a site within the Mildura region in northwest Victoria in March 2019.
Cann Group intends to construct a state-of-the-art greenhouse for large-scale cultivation and production of medicinal cannabis to service domestic and export markets.