‘Pot stock’ Cann Group gets green light to expand its two Victorian facilities

Cann Group medicinal cannabis Victoria

Medicinal cannabis developer Cann Group (ASX: CAN) has secured regulatory approvals to boost capacity at its two Victorian facilities in Australia.

Australia’s Office of Drug Control has approved Cann’s request to vary its existing medicinal cannabis and cannabis research licences to use the expanded capacity at its Southern Victoria facility and to increase its cultivation, production and research at its new Northern facility.

Cann gained several required permits for its Southern facility in the first five months of 2017 and immediately started expansion works at the operation to increase cultivation, processing, drying and storage capacity.

“The commissioning of the expanded facilities will represent another important milestone in our business strategy as we look to reinforce our leadership position in the Australian medicinal cannabis industry,” Cann chief executive officer Peter Crock said.

The Northern facility comprises administration, research and development plus two climate controlled greenhouse cultivation areas.

The two greenhouse cultivation areas are certified physical containment level two, which allows different cannabis varieties to be grown and kept separate.

“We are on track to be plant ready at the Northern facility by the end of this year and aim to hold the necessary cultivation permits required to start cultivation at that time,” he said.

Cann was Australia’s first company to gain a medicinal cannabis research licence in Australia, securing it in February 2017 and acquiring the country’s first medical cannabis cultivation licence a month later in March.

Cann is focused on producing medicinal cannabis for Australians suffering from a range of diseases and medical conditions.

The market reacted positively to the news with Cann’s stock rising more than 9% to peak at A$1.64 in early afternoon trade.

Lorna has more than 10 years’ experience as a finance journalist and editor. She has written for an array of industry publications reporting on various sectors, including: resources, energy, construction, biotech, pharma, science and technology, agriculture, and chemicals. Specialising in resources, Lorna has covered a myriad of small and large cap ASX and dual-listed stocks.