- Cann Group (CAN) has signed a five year supply agreement with Pure Cann New Zealand
- Under this agreement, Cann will be the main production and manufacture partner for Pure Cann
- Pure Cann is focusing on creating a business to supply medicinal cannabis to patients in New Zealand
- This follows New Zealand’s new laws around medicinal cannabis that came into place earlier this month.
- These new rules are to make it easier for doctors to prescribe medicinal cannabis and for manufacturing and cultivating licenses to be granted
- Cann is up slightly on the market today, selling shares for 87.5¢ per share
Cann Group (CAN) has signed a five year supply agreement with Pure Cann New Zealand.
Under this agreement, Cann will be the primary production and manufacture partner for Pure Cann.
Pure Cann is building a patient-centric medicinal cannabis business and is focused on supplying medicinal cannabis to patients in New Zealand.
The country’s medicinal cannabis new rules came into effect on April 1 2020 and were put in place to make it easier for doctors to prescribe medicinal cannabis and for manufacturing and cultivating licenses to be granted.
Cann will supply products manufactured from cannabis flowers grown at Cann Group’s existing facilities, including the Mildura facility.
Cann, through its subsidiary Botanitech, holds a 3.9 per cent interest in Pure Cann. The company purchased the holding for NZ$1 million. This new agreement will also allow Cann to increase its holding to 7.7 per cent.
To receive this holding the company will purchase a further NZ$1 million in Pure Cann’s shares.
“Our ability to secure supply agreements with quality long-term partners helps support the value of our expansion plans and reinforces Cann Group as a leader in cannabis genetics, cultivation and manufacture,” Cann Group CEO Peter Crock, said.
The existing technical service agreement (TSA) between the companies has also been extended until April 2026.
Cann is up slightly on the market today, selling shares for 87.5¢ per share at market close.