HEAR IT FIRST WITH OUR DAILY NEWSLETTER



We don't spam. Learn more about our Privacy Policy

Queensland Bauxite plans to test a “world first” cannabis pain relief pill in Australia under an agreement with a group of US chemists.

Vitacann, owned by Queensland Bauxite’s Medical Cannabis subsidiary, signed a “letter of intent” to join forces with the unnamed group of chemists to manufacture pills for short and extended pain relief.

Queensland Bauxite (ASX:QBL) shares have increased in value six-fold since the beginning of November — largely on the back of its entry into the hemp seed food market.

However Monday’s announcement, which was short on detail, didn’t impress investors. The shares closed down 6 per cent at 6.4c.

Queensland Bauxite shares over the past three months. Source: Investing.com
Queensland Bauxite shares over the past three months. Source: Investing.com

The company is ostensibly focused on exploring bauxite tenements in QLD and NSW.

It is however, medicinal cannabis and hemp food relaed news that has pushed QBL from 0.7c to 6.4c in the past 12 months.

Chair Pnina Feldman told shareholders she was confident of the latest milestone.

“The [cannabis pain relief] pill is an immensely exciting breakthrough awaiting formal clinical human trials in Australia, which as with any new medical product is necessary prior to being approved as a medication in Australia,” she said.

“Due to anecdotal evidence of current users of this new product to date, it is believed that it will work as an effective and measured pain reliever.”

Earlier this month QBL announced the start of the country’s biggest hemp food production.