The gradual shift from bauxite mining into medical cannabis production is moving full steam ahead for Queensland Bauxite (ASX: QBL). After market close yesterday, the company said its acquisition target Medcan had been awarded highly anticipated import and export licences from Australia’s Office of Drug Control (ODC).
The two licences mean that Medcan is now authorised to import and export a wide range of cannabis products and thereby offer “significant international and local opportunities”, according to Queensland Bauxite.
Some of the products that are now permitted for import/export include dried flower finished products, oil extracts, medicinal cannabis products manufactured in Australia under a GMP Licence and cannabis resin extracts manufactured under the Narcotic Drugs Act 1967.
Last but not least, the licence allows Canntab XR Pills produced in Canada to be imported into Australia.
As it stands, Queensland Bauxite is diversifying its commercial strategy by advancing bauxite mining in parallel to medicinal cannabis production.
Last month, Queensland Bauxite announced a double acquisition of existing subsidiary, Medical Cannabis Limited (MCL) and entering into a legally binding heads of agreement to acquire the entirety of Medcan Australia, an established medical cannabis producer with all the necessary licencing and infrastructure in place to commence production (and sales) of high-grade cannabis.
Queensland Bauxite has confirmed that it intends to integrate Medcan into the broader MCL group and eventually produce high cannabinoid (CBD) and tetrahydrocannabinol (THC) rich variations of medicinal cannabis, as well as other cannabinoid variations to be used in research to manufacture patient-specific products in accordance with continually changing legislation.
“We are extremely happy to add the import and export licences to our current suite of licences. This brings Medcan Australia another step closer to our vision of providing patient-specific Medicinal Cannabis products to the people that need them most. It also allows us the ability to capitalise on various opportunities in the international market immediately,” said Craig Cochran, CEO of Medcan Australia.
“We continue to be impressed with the knowledge and professionalism of the Medcan team to have been one of the very few in Australia to have achieved the granting of all these valuable licences. We are confident that Medcan, together with our international network and dedicated and experienced team, will immediately be able to build on these achievements in the short term to create much shareholder wealth,” said Pnina Feldman, executive chairperson of Queensland Bauxite.