- Medicinal cannabis company Cann Group (CAN) has qualified as an essential service and will continue operating during the COVID-19 pandemic
- The company has initiated shift-based work at its cultivation facilities, with all other staff working from home
- Cann reports that COVID-19 may delay funding decisions for the company’s planned production facility in Mildura
- In happier news, Cann’s first GMP-manufactured products have completed initial shelf-life stability testing and can now go on the market
- Cann Group’s share price is up 11.3 per cent, trading for $0.79 per share
Medicinal cannabis company Cann Group (CAN) has been deemed an essential service and will continue operating during the COVID-19 crisis.
The company qualified because of its status as a supplier of medical products to Australian patients.
However, in order to safeguard the health and welfare of employees, customers, and business partners, Cann has implemented some preventative measures.
The company’s business continuity plan has involved moving to a shift-based operation at its cultivation facilities. All other employees are working from home where possible.
Meanwhile, the group is continuing to explore funding options for its planned production facility in Mildura.
However, the economic uncertainty and market volatility caused by COVID-19 may delay a final funding decision. The company says that the board might not make a decision about funding until the end of the financial year.
COVID-19, and the many delays it has caused, may also impact the previous timeline for the facility’s construction and commissioning. Cann Group believes that it has enough working capital to support its current operations during this chaotic period.
In more positive news, the company’s first GMP manufactured product formulations have completed initial shelf-life stability testing. As a result, Cann Group can now release its dried cannabis flower and cannabis oil to the market.
Cann Group’s share price is up 11.3 per cent, trading for $0.79 per share at 12:01 pm AEDT.