Cann Group Limited [ASX: CAN] listed on the ASX back in 2017.
At the time, Cann Group Limited set about raising $13.5m by issuing 45m shares at 35 cents each.
At the time of writing, Cann Group Limited has a market cap of $276m.
The compelling story behind Cann Group Limited [ASX: CAN] is that it was one of the first Australian medicinal cannabis companies. CAN receive its cultivation license for supply and research back in 2017.
It now has two active growing research facilities in Melbourne and has completed 38 harvests.
You may not be previously familiar with Cann Group Limited.
Let me fill you in further…
Who is Cann Group Limited [ASX: CAN]?
Cann Group Limited (Who I’ll now refer to as CAN) is an Australian company.
They cultivate medicinal cannabis for both human use and research purposes.
While its focus is to supply Aussies with medicinal cannabis and resin, it also wants to grow exports to international markets.
But there is one point I want to draw to your attention.
You see above, I noted how CAN has its research license, cultivation license.
Well as of 26 July 2019 it now secured manufacturing licenses for its existing Melbourne facilities.
If you’re unsure… Let me briefly explain the benefits of this.
This license type will allow CAN to manufacture, package, store, transport and even dispose of medicinal cannabis.
And now that CAN has a manufacturing license, they hold all three licenses that are required by the Narcotics Drug Act.
This gives CAN an advantage over its competitors in this space.
What’s next for CAN?
Now that I’ve highlighted some decent progress for CAN, I want to draw your attention to their current facilities.
Above I mentioned that they had two facilities in Melbourne.
Well, one thing I didn’t mention was their Mildura site.
CAN purchased this site for $10.75m. This site will support its ‘world-class’ greenhouse.
This facility is expected to produce around 50,000 kg of dry flower per annum.
CAN also has collaborations with La Trobe University, Agriculture Victoria, Aurora and CSIRO in research and development.
Their partnership with Aurora is standout. Aurora Cannabis [TSXV: ACB] is one of the largest Canadian cannabis companies. Not only that, they have sales teams and operations in 24 countries over five continents
I guess you could say, they’re a big deal…
It’s so big that CAN and Aurora hold a five-year offtake agreement. This will see Aurora take up Cann’s production of ‘GMP’ processed dry flower, extract resin and manufactured medicinal cannabis until 2024.
CAN is one that you want to be watching. The developments in this sector could be huge.
Please note this is not a recommendation to buy or sell CAN. It’s an update only.
Until next time,