AusCann raises AU$3m in capital to grow medicinal cannabis on Christmas Island
Will source five varieties of CBD-rich cannabis from exclusive partnership with Phytoplant Research
Australian medicinal cannabis company AusCann Group Holdings will begin planting trial crops of medicinal marihuana on Christmas Island in early 2016, following a successful AU$3m capital raising.
Funds raised will enable the company to immediately progress a key research and development project on Christmas Island ahead of a listing on the Australian Securities Exchange in early 2016.
Cannabis remains an illegal substance in Australia, but the federal government has flagged introducing a bill next year to legalise growing the plants for their medicinal uses.
AusCann Managing Director Elaine Darby said the company was now in the final planning stages for a trial crop on Christmas Island, which will feature five varieties of CBD-rich cannabis sourced under an exclusive partnership with Spain-based partner Phytoplant Research.
The Christmas Island plantings will be undertaken in collaboration with Dr John Howieson and his team of scientists from Western Australia’s Murdoch University and will include high-yielding strains of specific cannabinoids with potent medicinal properties. Dr Howieson and his team have undertaken extensive research into the growing of agricultural crops on Christmas Island and have an intimate knowledge of the unique growing conditions. They say there will be minimal impact on the Christmas Island ecosystem as the trials will be undertaken on reclaimed phosphate mining land.
Christmas Island is located three and a half hours north west of Perth.
It is feasible that we could produce two crops each year
Darby said: 'All going well in the R&D planting trial on Christmas Island – and we have no reason to expect otherwise – we would expect the first commercial crops planted in late 2016, subject to Commonwealth legislation being amended as proposed.
'In line with our strategy, we have carefully selected Christmas Island for its isolation, climate and security. In particular, we note that the amount of available daylight hours is critical to triggering cannabis plant flowering. Christmas Island experiences minimal changes to its daylight hours, so it is feasible that we could produce two crops each year. This presents an outstanding commercial opportunity for our company and its investors.'
Medicinal cannabis is legal in a number of European countries, including the Netherlands, Austria, Belgium, Czech Republic, Finland, Italy and Spain, as well as in Canada, Israel and in 23 states in the US.
The drug is well recognised for its use in managing symptoms or modifying underlying disease states for conditions including multiple sclerosis, fibromyalgia, arthritis and epilepsy. It has also been used to manage chemotherapy-induced nausea, as well as chronic neuropathic pain.
