- Australia has been lagging behind in global medicinal cannabis legislation until recent years
- However, just because it’s become legal for doctors to prescribe the treatment, doesn’t mean it’s easy
- Only five per cent of doctors across the nation currently prescribe medicinal cannabis
- Montu is working to change that with a major network of doctors that can service half a million Australians anywhere in the country
- The company is giving Australians the opportunity to invest in its disruptive doctor platform through Birchal equity funding
- Investors will have to move quickly, though; the expression of interest phase for the Birchal investment closes on October 12
- Those who register their interest before then will have first dibs at the investment offer, which Montu is expecting to be oversubscribed
Astute Australian investors are itching to invest in medicinal cannabis company Montu, which is set to launch its equity offering in a few days by October 12.
The company has had a flurry of press coverage over the past month due to its ability to make access to medicinal cannabis far easier.
Patients, investors, and media alike are interested in the implications of the Montu platform on the medicinal cannabis sector. Now, Montu is giving Australians the opportunity to invest into a major disruptor of Australia and New Zealand’s $1.7 billion cannabis industry.
However, the opportunity is only available to investors ready to act quickly.
Australia’s changing cannabis laws
Global markets turned their heads to the cannabis industry in 2012 when two U.S. states first legalised recreational use of the drug.
Australia, however, was leagues behind in legislation, making it unable to tap into the enormous potential of this market, which Grandview estimates will be worth almost US$74 billion (around A$103 billion) by 2027.
That was until 2016, when the Turnbull government first legalised the use of cannabis for medical treatment. While this was a decade late, compared to some other advanced nations, it kicked the momentum for Australian cannabis legislation into gear.
In 2017, Australia’s Office of Drug Control (ODC) issues the country’s first cultivation licence to ASX-listed Cann Group.
Over the next three years, several cultivation and export licences would be granted across the country. At the same time, medicinal marijuana laws were slowly relaxed to the point where the drug could be prescribed by a local GP for pain relief in any Australian state.
But just because it’s legal, doesn’t mean it’s easy.
Be it because of the stigma still attached to the treatment, an outdated opinion, or a simple lack of understanding of how it works, Australian doctors are rarely prescribing medicinal cannabis to patients. This is true even in cases where research shows the treatment would be highly beneficial. Montu is changing that.
Montu’s network of doctors
Montu is a fully licensed medical cannabis company with a clear focus on the Australian and New Zealand market.
While the company offers its own medicinal-grade cannabis and cannabis-based medicines under the Circle brand, Montu’s primary focus is making it easier for patients to access these crucial treatments.
The company aims to remove obstacles in the medicinal cannabis world and make it easier for patients to access high-quality products.
Montu’s solution is a nationwide network of doctors that can service half a million Australians anywhere in the country.
Montu Managing Director Christopher Strauch said as it stands, only five per cent of Australian doctors currently prescribe cannabis medication. Of those, only an average of 10 patients from that doctor’s practice of 1000 receive cannabis treatment.
“When you consider 77 per cent of Australians have a preferred GP they rarely switch from if that GP is unfamiliar with the type of medical cannabis treatments and the conditions they cover or, even worse, dispense out of date opinions, a patient’s access can be stopped dead in the water,” Christopher explained.
He said 84 per cent of Australians support medicinal legislation — meaning these GP roadblocks are out of sync with the average person.
“We help doctors to become confident prescribers by offering them a suite of services. We provide practical education, access to high-quality products, and an online prescribing platform to ensure they have a seamless experience,” he said.
Montu’s online database can put patients directly in touch with doctors in favour of the drug, all but guaranteeing the patient can receive the desired treatment.
To support this platform, Montu is now turning to Australian investors.
Birchal equity raising
In preparation of a planned ASX listing in 2021, Montu is giving Australians the chance to invest in the company through Birchal’s equity funding platform
Essentially, this means investors can buy their share of the company — without a brokerage fee — through the Birchal platform.
“Montu is expecting huge interest in its nationwide doctor network not only from patients but also the country’s investors,” Christopher explained.
“For this reason, Montu is providing investors the opportunity to own shares in the company, which will fund further expansion plans that will capitalise on Australia and New Zealand’s $1.7 billion cannabis industry,” he said.
Ever since launching its product into the Australian market, Montu has grown revenue by 40 per cent every month.
“Our nationwide network of medical cannabis prescribing doctors includes Australia’s leading health providers, such as IPN, Healius, SmartClinics, MyHealth, MyClinic and Ochre Health,” Christopher said.
In fact, the company landed a major deal with Western Australia’s biggest clinic network, Jupiter Health, in August, which will add 300 doctors to the Montu network
First in, best dressed
However, investors wanting to nab an interest in Montu better move quickly.
The company said it’s expecting the investment offer to be oversubscribed, with those who express their interest in the company getting first dibs at a private share offering.
The expression of interest phase of the Birchal fundraising closes on October 12 — meaning investors who don’t sign up in time could miss out.
Montu said its platform has fielded more enquiries in the past four weeks than ever before in company history — largely due to enhanced media interest in cannabis access following the Therapeutic Goods Administration’s (TGA) recent announcement of potential over-the-counter cannabis.
The private offer, available to those who lodge an expression of interest, will last for 48 hours, after which the investment opportunity will open to the public.
The question, then, remains: will cannabis investors seize the opportunity to put their money in a company primed to disrupt the medicinal cannabis sector, or will they be too late?
Find more information about the investment round: www.birchal.com/company/montu
For more information about the company: www.montu.com.au
Montu Investor Relations Contact: invest@montu.com.au