The federal government has issued cannabis play Cann Group with new 12-month research and growing licences to replace those due to expire.

All medical cannabis licences issued by the Office of Drug Control expire every 12 months, whether they are used or not.

“This prevents a permit being held where the licence for the facility is not current and may not be renewed,” the Office of Drug Control says.

Cann (ASX:CAN) has secured a new Cannabis Research Licence and Medicinal Cannabis Licence along with the associated permits needed for cultivation, maintenance and use of mother plants and importantly, for cultivation and product for supply for therapeutic purposes.

Cann was the first to be issued with the research licence and medicinal cannabis licence in February and March 2017 respectively.

“The granting of these new licences provides us with the security to continue to pursue our business plan aggressively, including cannabis cultivation for both domestic demand as well as export opportunities,” said Cann Group CEO Peter Crock.

Cann Group (ASX:CAN) shares over the past six months.
Cann Group (ASX:CAN) shares over the past six months.

Cann is in the process of building a new 16,000 sq m facility to cater to export demand, and says it’s scaling up operations at its two current production sites in Victoria.

The shares were up 5 per cent to $3.40 in Monday morning trade.

Featured Companies

You might be interested in