AU: Expansion plans for Australian grower

Cann Group has entered into the HOA to purchase a site located within the Mildura Rural City Council, in North West Victoria, for $10.75 million (plus GST) in order to build a greenhouse for large scale cultivation and production of medicinal cannabis to service both domestic and export markets.

"Cann currently operates two medicinal cannabis facilities in Melbourne. The new greenhouse facility is expected to have a production capacity of up to 50,000 kilograms of dry flower per annum and is expected to be fully commissioned in the third quarter of calendar year 2020 with an estimated construction cost of approximately $130 million.", the team with the company explains. 

In previous news, the company announced the intention to lease a site from the Australian Pacific Airports Pty. However, after careful consideration and revision, the company decided to proceed with construction at the Mildura site. "Discussions will continue with APAM in relation to Tullamarine’s potential as a future site for a full GMP manufacturing facility and greenhouse production expansion.", the company remarks.

"The Mildura site is ideally suited to the design and size of the greenhouse previously planned for Tullamarine, with all completed engineering and design plans able to be utilised. The site is also well serviced with power, gas and other necessary amenities, including provisions for waste water treatment. Existing buildings on the site can be readily repurposed as the necessary support facilities required alongside the cultivation and harvesting activity in the new greenhouse. "

“This is particularly important given the offtake agreement we have executed with our strategic partner, Aurora Cannabis, who has committed to purchase all of our production in excess of that required for patients here in Australia."

“The Mildura site offers other important advantages, including a lower total build cost and lower ongoing operating costs, due to the dryer climate and higher sunlight hours resulting in reduced power use.” Mr Crock, Cann Group CEO, says specialised components and materials are currently in transit to Australia, and site works are to begin immediately.

"When completed, it is expected that the new 34,000 square metre greenhouse will be one of the largest purpose-built medicinal cannabis production facilities in Australia, with capacity to produce up to 50,000 kgs of dry flower. The raw cannabis flower produced at the Mildura site will be processed by Cann’s manufacturing contractor IDT Australia (IDT) into downstream products ready for supply to Australian patients and export."

"Cann is continuing progression toward establishment of its third-party GMP product manufacturing capability with IDT, enabling production of value-added formulations which can be supplied to Australian patients and under the offtake agreement with Aurora. Equipment is currently being installed and commissioned at IDT to facilitate full GMP manufacturing of these products. IDT is an ASX-listed pharmaceutical manufacturing company based in Melbourne with experience in the development and production of high potency and high containment pharmaceutical products. It is fully cGMP compliant with regular US FDA and Australian TGA audits.", the company continues. 

For more information: 
Cann Group
+61 (0)3 9095 7088  

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