Cann Group lowers guidance, makes acquisition; Zelira to get new boss
Health & Biotech
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The company said that COVID-19-related regulatory delays in both Australia and Germany mean it would probably recognise revenue forecast from a large order of full-spectrum cannabis oil to its German distribution partner in the first half of FY2022, rather than this financial year.
Consequently, Cann Group said it was forecasting revenue of $8 million to $10 million, rather than the $15 million that CEO Peter Crock predicted at the company’s November 24 annual general meeting that Cann was confident about.
“While the lengthy regulatory delays are frustrating, we believe this is a timing issue only and the fundamentals of the business have not changed,” Crock said Monday.
“Demand for Cann product continues to build steadily and our commitment to produce quality product to the highest GMP standards ensures the broadest possible market access opportunity.”
Separately, Cann said it would buy a European business “with proprietary cannabinoid delivery technology” for up to $C4 million ($4.1 million).
Acquiring Satipharm from Harvest One Cannabis will let Cann Group develop more targeted and effective forms of low-dose CBD products. Cann said it would use Satipharm’s Gelpell micro-encapsulation technology as part of an application to sell low-dose CBD products in Australia under a recent regulatory change.
At 11.50am, Cann Group shares were up 1.9 per cent to 78.5c.
Meanwhile, Zelira Therapeutics (ASX:ZLD) said it would transfer leadership to its United States team, with Philadelphia-based Dr Oludare Odumosu assuming the role of global managing director of the cannabis company.
Dr Richard Hopkins is stepping down as chief executive officer and managing director ex-USA, effective May 15.
Dr Odumosu, a native of Nigeria who has a PhD in biochemistry from Loma Linda University, will be one of a small number of ethnically diverse CEOs to lead an ASX-listed company.
Zelira shares were up 3.6 per cent to 8.7c at lunchtime.
In other ASX cannabis news on Monday, Creso Pharma (ASX:CPH) signed a distribution agreement that will see its hemp derived products sold in Pakistan, while MGC Pharmaceuticals (ASX:MXC) has begun a new clinical study into using its nano-delivery platform to treat an aggressive form of brain cancer
Cann Group, Zelira shares