Cannabis: Impression Healthcare ramps up medicinal cannabis operations with new purchase
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Impression Healthcare (ASX:IHL) is boosting its stock of medicinal cannabis products to “ensure ongoing supply”, as it continues forward with a recent push into the sector.
The company has placed a purchase order for 3,000 bottles of cannabinoid oils from Australian company Cannvalate Pty Ltd.
And in connection with today’s acquisition, Impression also strengthened commercial ties with Cannvalate — which it says is the largest distributor of medicinal cannabis in the Australian market.
The company said Cannvalate had expressed its intention to exercise its second tranche of stock options in Impression, which would make it a “major long-term shareholder of Impression”.
The products will be distributed by registered health professionals in accordance with the Special Access Scheme, overseen by the Therapeutic Goods Administration.
With its new order, Impression is aiming to expand its product range to meet demand where patient needs are highest, the company said.
The deal will see three new products — Nutralesic, Inflammex and Releafia — added to the company’s product mix.
Impression said the expansion followed on from some early traction with its CBD-100 isolate, which had been distributed to more than 1,000 customers.
The company said it would now have a “product suite that covers the majority of the addressable market for legal cannabinoid products in Australia”.
While Impression still sells its range of mouthguard products for sport and sleep purposes, it now describes itself on its website as a “cannabinoid medicines development company”.
Along with its expanded product range, the company is also undertaking clinical trials to develop four other medicinal cannabis products.
News of the purchase order and commercial arrangments with Cannvalate helped provide a boost for IHL’s share price, which rose by 15 per cent in morning trade:
Shares in cannabis-adjacent Roots Sustainable Agriculture (ASX:ROO) also got a boost, after the company signed a distribution agreement into Italy for its temperature-optimisation indoor farming technology. To maintain exclusivity, Italian company Cairo & Doutcher is aiming to sell five units in the first year and Roots said the deal offered “clearly defined sales targets totalling €3,500,000” through to 2023. Shares rose 16.67 per cent to 4.2c.