Why is Rua Bioscience’s (NZX:RUA) share rising today?

Be the First to Comment Read

Why is Rua Bioscience’s (NZX:RUA) share rising today?

Follow us on Google News:
 Why is Rua Bioscience’s (NZX:RUA) share rising today?
Image source: Source: © 2022 Kalkine Media®

Highlights

  • RUA makes headway with the Trans-Tasman medicinal cannabis partnership
  • The company exported its first seeds to Australia
  • The seeds will be grown by Cann Group

Rua Bioscience Limited (NZX: RUA) announced today (7 October 2022) that its partnership with Australia-based Cann Group had made headway during the week with the two companies moving further into cultivating medicinal cannabis.

In what is understood to be the first legal export of cannabis genetics under the medicinal cannabis scheme, Rua exported its first seeds to Australia.

As per the company, the seeds will be grown by Cann Group and assessed for commercial potential. A similar trial is likely to be run at Rua’s cultivation R&D facility in Ruatorea.

Anna Stove, managing director, said that the export of seeds showed the potential to establish an end-to-end cultivation and supply chain solution at scale.

She added that it was taking time, but synergy between the plant knowledge of RUA and the global cultivation scale of Cann Group would give it a competitive advantage.

About Cann Group

Cann Group is an Australian group focused on cultivating and manufacturing medicinal cannabis for sale and use within Australia and internationally. The group has research and cultivation facilities in Melbourne and is striving to offer access to medicinal cannabis for Australian patients.

Cann Group also announced this week that the GMP manufacturing licence for the company’s Mildura facility had been extended to cover the manufacturing and release of finished dried flower products for patient use. Cann’s new AU$120 million cultivation and processing facility at Mildura is considered to be one of the largest and most advanced in Australasia.

FY22 financials

In its FY22 results (28 August, 2022), the company said that it remained focused on preparing for a market entry, both in New Zealand and globally. It developed partners and frameworks during the year so that it could launch its products in new markets.

RUA reported a loss before tax of NZ$7.49 million. According to the company, the loss can be attributed to RUA’s research and development spending. As of now, the company is focused on investing in research and development, which will support the generation of sustainable revenues in the future.

According to RUA CEO Rob Mitchell, in FY22, the company achieved key milestones, as it prepares to enter European markets. It has also launched its first product in New Zealand.

Stock update

On 7 October, the share of RUA was trading almost 9% up at NZ$0.250, at the time of writing.

Disclaimer

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK