With the passing of new Australian legislation allowing human hemp consumption, Queensland Bauxite (ASX: QBL) can now sell hemp food via its 55%-owned subsidiary Medical Cannabis Ltd.
The hemp food products will be sold under Medical Cannabis’ Vitahemp brand, which will be officially launched later this month.
The new legislation permitting the sale of low THC hemp seed foods was proposed in April this year and came into effect on 12 November.
In preparation for this legislation, Medical Cannabis built a cannabis seed bank and gained the requisite licences to grow low THC cannabis for nutritional purposes.
The company has developed its own seed, which will form the basis of its products. Medical Cannabis has an initial 20 tonnes of seed, which it will plant, grow, harvest, process and incorporate into its own hemp food products, which will then be sold within Australia and global markets.
“It’s a watershed moment on many fronts,” Medical Cannabis technical director Andrew Kavasilas said. “Hemp seeds nutritional qualities are unparalleled, so we’ll have a truly healthy food finally available with new farming opportunities including access to a massive international market.”
Mr Kavasilas added the new legislation will also create jobs across production, processing, logistics, design, packaging, marketing, wholesale and retail.
According to Queensland Bauxite, hemp seeds contain several omega fatty acids that are “tuned perfectly” to the human body. Hemp seeds also have a huge range of vitamins and minerals, are gluten free, and have a taste and texture similar to many nuts but hemp has no known allergies.
Hemp seeds can be incorporated in muesli bars, salad dressings, pasta, breads, smoothies, biscuits, non-whey high fibre protein, flour and numerous other foods. With a rich and creamy flavour, hemp seeds can also be processed into dairy substitutes.
The initial Vitahemp product range will be unveiled to the market with the brand launch at the end of the month and Queensland Bauxite anticipates “significant” cashflow from the products.
By late afternoon trade, Queensland Bauxite’s stock was up 40% on the news.