Pot stock Cann Group is beefing up its manufacturing capability as it seeks to acquire a licence to make cannabis products.

Cann (ASX:CAN) has signed a deal with IDT Australia (ASX:IDT) for manufacturing support to make cannabis products for domestic use and export.

IDT shares moved ahead 35 per cent to an intraday high of 10.5c before closing at 9.5c. Cann shares rose slightly to $2.93.

The marijuana merchant has all of the main licences and permits bar a manufacturing one.

Cannabis producers typically require a range of licences as well as separate permits that specify things like which strains a licence holder can grow and the number and weight of its plants.

>> Scroll down for a list of who has which licence in Australia cannabis

“IDT’s manufacturing facilities are ideally suited to undertake this work and our track record in completing highly complex projects to global cGMP1 quality standards ensures we can add significant value to Cann’s development efforts,” said IDT CEO Dr David Sparling in a statement.

He told Stockhead that the terms of precisely what they will be doing for Cann are confidential, but they are working on a “range of projects” as a contract manufacturer.

Dr Sparling says they will be gaining expertise in medical cannabis and says their small market cap shouldn’t belie their experience as a pharmaceuticals manufacturer — they’ve been around since 1975.

IDT has a market cap of just $19 million, compared to Cann’s $308 million.

IDT is a tiny pharmaceuticals manufacturer, specialising in making “high containment, high potency” ingredients and products, as well as handling the testing and packaging.

Stockhead columnist Tim Boreham profiled IDT Australia this week.

The only company in Australia to hold a manufacturing licence so far is AusCann (ASX:AC8), which it holds in its own right thanks to a partnership with opiate maker Tasmanian Alkaloids.

Cann shares slipped on Tuesday morning to $2.89, while IDT’s were flat at 7.8c.

Stockhead is seeking comment from Cann.

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