Cann Group is importing cannabis plant tissue to build its own genetic strains
Health & Biotech
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Cannabis cultivator Cann Group has won approval to start importing plant tissue from Canada to help cultivate its own strains of medical marijuana.
The import permits will allow Cann (ASX:CAN) to bring into the country tissue culture from its Canadian partners Aurora Cannabis and Anadia Labs – to be used to develop “mother plants”.
Cann shares climbed 5 per cent to $3.24 in early Tuesday trade, for a market cap of $320 million.
The company plans to test the suitability of each strain for certain therapeutic applications, broadening supply beyond those available locally.
The move follows the federal government’s reissue of research and medical cannabis licences to the company last month.
Cann will also import Canadian cannabis oils, to be made available to doctors seeking to provide patients under the government’s Special Access Scheme or Authorised Prescriber Scheme.
Last week the NSW government joined the Northern Territory in slashing red tape for prescription of medical cannabis and other States are expected to follow.
“With these genetics, we will broaden our genetic base and improve our ability to cultivate various strains of medical cannabis,” Cann’s chief Peter Crock told investors.
“In addition to this, we are serious about providing access to product for Australian patients as quickly and easily as possible, and the importation of oils fast-tracks this while we develop our own capabilities and products within Australia.”
Shares in the company were trading up 4 per cent on Tuesday morning at $3.13.
Last month the company inked an initial agreement with cannabis research company Under The Tree Biopharmaceuticals to set up a laboratory within its recently-opened Northern facility in Melbourne.
CAN told the market it would allow for research into improving analysis of cannabis botanical raw material, intermediates and finished medicinal cannabis products as well as development of medicinal cannabis manufacturing techniques for various delivery formulations.
Of particular note, the researcher said the partnership would allow for further understanding of the role and potential benefits of specific minor cannabinoids in certain strains of cannabis.