Cann Group Limited (ASX: CAN) produces and supplies medical cannabis. The Company cultivates, extracts, and breeds medical cannabis for a range of diseases and medical conditions. Cann Group markets its products in Australia.
The company has via the latest release on ASX disclosed its quarterly activities report and the cash flow statement, for the quarter ended 31 December 2018.
For the quarter, Cann Group signed a comprehensive, three-year agreement with the Commonwealth Scientific and Industrial Research Organisation (CSIRO) to extend its research and development collaboration. The agreement enables Cann to investigate numerous opportunities across medicinal cannabis technologies. As set out in the pact, all resulting intellectual property will be owned by Cann.
During the period, Cann garnered a contract from the Victorian Department of Health and Human Services (DHHS), for providing cannabis resin. The agreement encompasses the supply of resin from April 2019 through to 30 June 2020, with commercial terms of the contract to remain confidential.
Cann Group’s collaborative arrangements with other Victorian Government departments, including the Department of Economic Development, Jobs, Transport and Resources (DEDJTR) which pioneered the cultivation of the cannabis plant and development of an extraction process in Australia, have been crucial in the development of Cann Group’s cultivation capabilities.
Cann Group continued engagement with various stakeholders during the period, including attending the CannaTech Conference in Sydney alongside crucial other personnel from the medicinal cannabis sector both locally and overseas.
Aurora Cannabis’ Chief Corporate Officer Cam Battley was in Australia to attend CannaTech, with Cann Group taking the opportunity to conduct a roadshow alongside Mr. Battley which yielded great engagement with government officials, institutional investors and the medical community.
Mr. Battley provided an essential perspective on the medicinal cannabis industry both in Canada and other international markets.
The Company continues to focus on building a robust platform that will generate sustainable profits and shareholder value over the long term. Cann is maintaining a science-based focus and is also prioritizing investing in the group’s expanded capacity and its numerous partnerships and collaborations.
As was outlined at the AGM, Cann Group expects to secure an export permit from the Office of Drug Control soon. This will allow the Company to set up at scale and access overseas markets while the Australian market continues to develop. Cann expects to take critical steps forward as it moves to fulfil its vision to be a market leader in medicinal cannabis products.
The company’s major expansion program, Project Tullamarine, continues to evolve with the final design phase recently being completed for a state-of-the-art cultivation space, laboratories, and a full GMP manufacturing facility. This allows Cann to complete the tender and final selection process with various contractors and suppliers to be engaged for Project Tullamarine. The company is entirely on schedule to start construction on the facility in the first quarter of 2019, while Cann continues discussions with several parties concerning potential offtake agreements.
Recently appointed General Manager Commercial Shane Duncan continues to develop the company’s commercial and go-to-market strategies, which will result in a significant expansion in patient numbers being addressed by Cann.
Now let us quickly have a look at the Cann group Limited’s stock performance and the return it has posted over the last few months. The stock is currently trading at a price of $2.15 and is trading up by 1.896% during the day’s trade, with a market capitalization of $294.78 million. The stock has yielded a Year till Date returns of 5.50% and posted returns of -24.64%, -11.72% over the last six months & three months respectively. It has a 52-week high price of $3.88 and touched 52 weeks low of $1.70, with an average volume of 102,664 approximately.
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