QBL lands Israeli cannabis partner; pushes back ASX re-listing date
Queensland Bauxite’s new cannabis business has signed on with an Israeli partner to make drugs in Australia, a day after pushing back its re-listing date by two weeks.
The company has been suspended from trading since July while it seeks to recomply with ASX rules, as it switches from bauxite to cannabis.
MedCan, the licensed cannabis grower that QBL is in the process of buying, has signed an agreement with Israeli company Pharmocann to make products in Australia.
The pair will also work together to start clinical trials in Australia. Pharmocann says it’s already started trials in Israel.
MedCan has licences for manufacturing, cultivation, importing and exporting, and a Queensland permit to hold Schedule 9 substances.
But it will still need a federal permit, the last step before growing can commence, in order to actually start growing medical cannabis.
Medcan Australia CEO Craig Cochran said they’d been talking to the Israeli company since early 2017.
A set back
The news comes a day after Queensland Bauxite (ASX:QBL) said their return to the market as Cann Global has been pushed back by two weeks into November.
The company has been suspended from trading since July 30 while it seeks to recomply with ASX rules, as it switches from bauxite explorer to cannabis company.
Queensland Bauxite also revealed that it needs Federal Court approval for shares issued over a period of six years.
The Corporations Act allows small scale shares to be issued without disclosure, such as through a prospectus, but if the person who receives the shares wants to sell within 12 months a disclosure must be made.
It’s to avoid situations such as where a placement is made to a professional investor without disclosure and that stock is quickly offloaded into the market to retail investors who didn’t know new stock had been issued, according to law firm Steinepreis Paganin.
Not making those declarations — or ‘cleansing’ the shares of any restrictions — can mean suspension from the ASX potentially for long periods of time.
iCandy Interactive (ASX:ICI) was suspended from early January to the middle of April this year as it waited for a court order cleansing shares sold from a single placement in October the previous year.
Queensland Bauxite says it’s finding out just how many shares have been sold that shouldn’t have been.
They believe they can resolve the issue a little quicker than iCandy, as they’re hoping for a court turnaround of three weeks.