The director of a medical cannabis company says he would like the money he invested back, and the direction of the venture remains unclear. Southern Medicinal began growing medical cannabis inside the former paper mill building in Mataura in 2022, and one director claimed it would "disrupt the industry and the black market" by producing its products for a tenth of the price of its competitors.
Nearly three years later, the company appears to be in limbo. It is not growing plants, has not conducted clinical trials, and has not brought any products to the market. Southern Medicinal was a joint venture owned by Dunedin-based Natural Horticulture and Christchurch-based medical cannabis company Soma Group.
At its height in 2022, the company was operating a 10,000m² production area in Mataura with plans to expand to 30,000m² the following season.
In May of that year, Executive Director Greg Marshall told The Southland Times it needed 150 Southland farmers to grow cannabis for the operation, and it had plans for a 500m² lab, storage, and processing space. As the venture proceeded, it would need $750,000 to build capacity over a six to 12-month period, and $1 million for a nitrogen-injecting canning line.
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