Australian Medical Cannabis and Hemp Foods company, Cann Global Limited (ASX: CGB) ecently released on ASX that a pact has been inked with an Australian TGA & GMP approved pharma company, namely the BioHealth Pharmaceuticals (BioHealth). This association will substantially aid the company to revamp its production schedule of Medical Cannabis formulations and nutraceutical Hemp Food consumables & move it forward to the first half of FY2019.
This will help the company to focus upon the potentially lucrative short-term revenues to further establish CGB in the emerging Cannabis industries.
The MOU between Bio Health and Cann Global is entered into to assist Cann Global to derive the volume growth in its products in order to distribute the same into the Australian and Asian target markets. This strategy would initially be targeting Hong Kong, Japan and Korea.
Peter Edwards, the Production and Development Manager of Cann Global’s Food Division, has said that the Bio Health Pharmaceuticals are visibly a perfect fit with Cann Global.
He further added that the company now has got the ability to immediately produce the CannTab in heavy volumes along with the Pharmocann medical Cannabis products.
The company is also slated to produce the high volume co-branded nutraceutical products under the brand name of the Bio Health Pharmaceuticals and VitaHemp.
The company will be initially focussing upon the mature Hemp markets in the regions of Hong Kong, Japan & Korea. There are positive opportunities for both companies in existing markets, whilst exploring new, particularly large Asian chemist and health food conglomerates, including in the massive Chinese markets.”
Few of the key highlights are as follows:
- BioHealth will manufacture from its facilities in Sydney the CannTab Medical Cannabis formulations and proprietary medical products.
- CannTab and Pharmakon Executives to visit the Manufacturing facilities to oversee the production of their respective proprietary range of tablets and products.
- Cann Global will manage the business plan to manufacture and distribute the CannTab and Pharmocann products in Australia and Asia.
- Further consideration of possible co-branding Hemp oil nutraceuticals with Gel and Vegecap Hemp Seed and CBD oil tablets for the Australian and International export market.
- This new arrangement will return a multi-million-dollar saving to the Company in manufacturing costs, due to state-of-the-art existing on-site pharmaceutical infrastructure at the BioHealth facilities.
Now, let us have a glance at the Cann Global Limited’s stock performance and the return it has posted over the last few months. The stock last traded on 27 July 2018, at a price of $0.037, with a market capitalisation of ~$59.69 Million. The stock has provided a YTD return of -31.48% & also posted returns of -37.29%, -24.49% & -5.13% over the past six months, three & one-months period respectively. It had a 52-week high price of $0.066.
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