CARABOODA, Western Australia, July 31, 2017 /Weed Wire/ — AusCann Group Holdings Ltd (ASX:AC8) (‘AusCann’ or ‘the Company’) has today announced its Appendix 4C for the 3-month period ended 30 June 2017 and is pleased to provide an overview of its activities for the quarter.
The Company continues to draw on Canopy Growth Corporation’s expertise in the cultivation, manufacturing and importation of products and has leveraged this across its Australian operation. Operations over the past quarter have seen South America become an attractive region for AusCann upon the completion of the first harvest in Chile. In addition to this, AusCann has seen significant operational advancements in Australia, with its strategic partnership with Tasmanian Alkaloids Pty Ltd and attainment of its medicinal cannabis licence from the Office of Drug Control.
First Harvest in Chile
The Company completed its first harvest in Chile with over 300kg of dried cannabis buds which has been sent to certified manufacturing facility for processing into medicinal cannabis formulations. Pending successful clinical trials in Chile, formulations will be registered through the Chilean National Institute of Public Health for supply to Chilean patients and export markets. This is an advancement in AusCann’s strategic growth plans and a significant step towards revenue generation.
Australian Cultivation Operations
AusCann was one of a select few companies awarded an Australian medicinal cannabis licence from the Office of Drug Control under the Narcotic Drugs Act 1967. The licence enables AusCann to undertake medicinal cannabis cultivation operations within its targeted location in Western Australia.
In addition to the licence granted by the Australian Office of Drug Control to AusCann, the Company has entered into an exclusive long-term strategic partnership with Tasmanian Alkaloids Pty Ltd. The parties will work together to establish cultivation, manufacturing and distribution operations for cannabinoid medicines in Australia and overseas. Tasmanian Alkaloids produces approximately 40% of the world’s opiate crop in Tasmania.
It boasts a modern manufacturing facility which is fully compliant with Good Manufacturing Practice standards and employs over 180 staff consisting of scientists, engineers, technicians, marketers and administrators. It has established relationships with many of the world’s leading pharmaceutical companies being the largest producer and exporter of thebaine, the active ingredient in codeine and other pain control drugs. As cannabinoids and opioids share several pharmacologic properties and may act synergistically in pain treatment, the parties also look forward to developing novel therapeutic products for the relief of chronic pain.
AusCann and Tasmanian Alkaloids were recently granted a medicinal cannabis licence for the cultivation of medical cannabis crops in Tasmania, advancing their partnership and the production of medicinal cannabis products in Australia.
Medical Outreach Program and Appointment of Chief Medical Advisor
The purpose of the Medical Outreach Program is to advise Australian physicians on the endocannabinoid system and the current knowledge of cannabinoid therapeutics developed in other jurisdictions such as Canada. Canada has allowed the use of cannabinoid medicines since 2001. A clear access system for the prescription of cannabinoid medicines by Canadian physicians was established in March 2014 which has grown to over 170,000 registered patients.
The Program involves ongoing seminars, webinars and online accredited courses. In addition, the Program will provide ongoing mentoring support to practitioner’s prescribing AusCann’s cannabinoid medicines.
The Company has already hosted educational seminars by its Chief Medical Advisor, Dr Danial Schecter in Sydney, Brisbane and Perth.
Dr. Schecter has comprehensive knowledge of medical cannabis in practical clinical use. He has worked extensively within the field having founded the largest referral only clinic in Canada that specialises in cannabinoid medicine. Dr. Schecter has trained dozens of physicians in this field and has lectured at over one hundred events, both nationally and internationally, to thousands of physicians, pharmacists and patients about all aspects of cannabinoids.
AusCann is focused on the medical need for more effective control of chronic and neuropathic pain in Australia, a market that represents over 3 million Australians. Earlier this year, the US National Academies of Science Engineering Medicine confirmed that there is substantial and conclusive evidence for the use of cannabinoid medicines in the treatment of chronic pain symptoms.
AusCann’s first cannabinoid medicines are bring imported from their partner and major shareholder Canopy Growth Corporation, North America’s leading cannabis producer, prior to moving towards Australian grown and manufactured cannabinoid medicines produced with their strategic partner Tasmanian Alkaloids.
AusCann completed a successful Placement of $12 million with strong interest from new and existing institutional investors. There was high demand from both domestic and international regions indicating AusCann’s position as a globally recognised player in the medicinal cannabis sector.
Canopy Growth Corporation, AusCann’s strategic partner, participated in the Placement remaining the largest shareholder of AusCann at 11%. This funding will provide AusCann the necessary funding to advance its operations towards providing Australian patients with high quality and affordable cannabis medicines.
As of 30 June 2017, AusCann’s cash position was approximately $15 million.
The outlook for AusCann is very favourable. Increasing support from the scientific and medical community is advancing the development in the space and preliminary feedback from the Medical Outreach Program indicates an increasing interest in cannabinoids as a therapeutic treatment.
Australian physician engagement forms a core part of AusCann’s strategy and the Company will continue to raise awareness among the medical community, leveraging the significant skills and expertise of the business and its strategic partners.
Ms Elaine Darby, Managing Director, AusCann commented: “We continue to see growing recognition and acceptance of cannabinoid medicines as a therapeutic treatment from the public and regulators. This has been a busy quarter for AusCann. We have significantly strengthened our position in the Australian market through our strategic partnership with Tasmanian Alkaloids and I am delighted to have Dr Danial Schecter join our team as our Chief Medical Advisor. Both parties bring valuable and unrivaled expertise in the industry and place AusCann in a strong position in the burgeoning medical cannabis sector where patient demand is large and growing.”
For more information please contact
Elaine Darby Managing Director
+61 8 9561 8834
For Investment Enquires
+61 418 288 212
For Media Enquiries
Media & Capital Partners
+61 400 172 145
ABOUT AUSCANN GROUP
AusCann is an Australian based company that was incorporated in September 2014 with the aim of producing and providing high quality, economical and clinically validated cannabis medicines to patients. It is bringing together leading expertise and operations across all aspects of the medical cannabis value chain, beginning with cultivation and production, through to manufacture and distribution of products and has built a strong team of experts and partners with international connections. Partners includes TSX listed Canopy Growth Corporation the largest producer of medicinal cannabis in North America, DayaCann, the only licensed medicinal cannabis grower in Chile and Tasmanian Alkaloids, producer of
~40% of the world’s opiates.