QBL's acquisition target now has cannabis licences; shares jump 21pc

Queensland Bauxite says its acquisition target MedCan Australia has now secured export and import medical cannabis licences.

But due to competition rules, it will be some time before it can access these.

MedCan Australia has been granted the licences by the federal government’s Office of Drug Control, allowing them to import and export medical cannabis drugs and other finished products such as oils.

The MedCan takeover is not due to finalise until the end of August, however.

Australian competition rules state that companies in an acquisition process must still behave as competitors until the deal is done, meaning Medical Cannabis Ltd will not have access to either licence until then.

QBL shares jumped 21 per cent to an intraday high of 4.6c before cooling to 4.1c by 12.40pm AEST.

Another Queensland Bauxite (ASX:QBL) subsidiary, Medical Cannabis Ltd, has access to an import licence through a partnership with Burleigh Heads Cannabis, through which it wants to import a drug made by Canadian company CannTab.

Queensland bauxite director Shalom Feldman confirmed this week he is still waiting to bring the CannTab pills in, seven months after signing the deal.