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Cann Group (ASX:CAN) receives $3.2M R&D tax incentive

Health Care
ASX:CAN      MCAP $27.12M
08 January 2021 11:45 (AEST)
Cann Group (ASX:CAN) - CEO, Peter Crock

Source: La Trobe University

Cann Group (CAN) has received a $3.2 million research and development (R&D) tax incentive refund.

The refund covers part of the medicinal cannabis stock’s R&D costs for the 2020 financial year, including its strategic partnerships with key research entities.

The Australian Governments R&D tax incentive program provides companies with an offset for eligible R&D activities.

Cann says the funds will be reinvested into the continued development of its expansion, commercial activities and product portfolio.

“The refund that we have received under the R&D tax incentive program is an indicator of the company’s commitment to research in the medicinal cannabis sector,” CEO Peter Crock said.

“We’ve recently conducted a close review of these R&D programs to ensure we are prioritising our investment appropriately and will continue to see meaningful and beneficial outcomes from these activities,” he added.

Earlier this week, Cann invested C$1 million (just over A$1 million) in pharmaceutical company iuvo Therapeutics. Cann now holds around 2 per cent interest in iuvo.

On the market this morning, Cann is down 3.76 per cent and is trading at 64 cents per share at 11.19 am AEDT.

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